Detroit Bankruptcy Judge Halts State Court Challenges

Law360, New York (July 24, 2013, 7:32 PM EDT) -- The Michigan bankruptcy judge overseeing Detroit’s unprecedented Chapter 9 case on Wednesday granted the city’s request that pending litigation brought by employees and retirees challenging its bankruptcy filing be put on hold.

U.S. Bankruptcy Judge Steven W. Rhodes’ ruling, which confirmed that the automatic stay afforded bankrupt entities applied to all pending litigation, is a significant win for the city and its emergency financial manager, Kevyn Orr. Judge Rhodes’ order allows Detroit to move forward with its Chapter 9 proceedings despite a ruling from a Michigan...
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