Detroit Ch. 9 Judge Won’t Hear Key Argument From Retirees

Law360, New York (August 27, 2013, 3:50 PM ET) -- A Michigan bankruptcy judge said Monday that he will allow discovery on several issues surrounding Detroit’s bid for Chapter 9 eligibility, but that he will not consider a popular argument among retirees that the city’s filing violates a constitutional protection of their accrued benefits.

U.S. Bankruptcy Judge Steven W. Rhodes issued an order speeding up the eligibility process and outlining how he would handle the myriad objections filed against Detroit’s bid for eligibility under Chapter 9. Oral arguments on legal challenges to the city’s eligibility will...
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