Detroit Defends Ch. 9 Bid Against Retirees' Objections

Law360, Los Angeles (September 17, 2013, 10:41 PM EDT) -- Detroit's bid for Chapter 9 bankruptcy protection doesn't conflict with the Michigan Constitution's pensions clause, the city told a federal bankruptcy judge Tuesday in response to objections by the committee representing the city's public-sector retirees.

In a brief, the city blasted the retiree committee's assertion that Michigan Gov. Rick Snyder’s authorization for Detroit to file for Chapter 9 violated the pensions clause of the Michigan Constitution, saying no action had been taken against the retirees' pension rights.

"As the city has explained, the mere authorization and filing of...
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