Detroit Eligible For Ch. 9 Bankruptcy, Judge Rules
By Maria Chutchian
Law360, New York (December 3, 2013, 12:26 PM ET) -- A Michigan bankruptcy judge on Tuesday ruled, as expected, that Detroit is eligible for Chapter 9 relief, despite the tireless efforts of city workers and retirees to keep the case from moving forward out of fear that they will be the ones forced to endure the largest concessions.
U.S. Bankruptcy Judge Steven W. Rhodes' decision officially makes Detroit the largest Chapter 9 debtor ever, with its $18 billion debt trumping that of other municipalities like Stockton, Calif., and Jefferson County, Ala.