Watch CBS News

Judge Sets First Hearing For Detroit Bankruptcy

DETROIT (WWJ/AP) - The judge overseeing Detroit's bankruptcy case says he will hold the first hearing on Wednesday.

Judge Steven Rhodes says he will take up the city's request to freeze any lawsuits challenging last week's decision to file for bankruptcy protection.

A state judge last week ordered Gov. Rick Snyder to withdraw the bankruptcy petition in response to a lawsuit by retired public workers who are trying to protect their pensions. No action has been taken while that decision is being appealed, and a hearing that had been set for Monday was rescheduled for next week.

Attorneys for Detroit say there's no doubt that opponents will continue to pressure the city by pursuing litigation outside bankruptcy court.  The city says it's inappropriate.

Attorney for Detroit retirees, Ronald King, says they can't touch the pensions ...

"There is a constitutional protection in place that guarantees or protects crude pension benefits and we have an obligation to at least play that out," said King.

State-appointed Emergency Manager Kevyn Orr said, for a city suffocating under $18 billion in long-term debt, bankruptcy was the only viable option.

Detroit's Chapter 9 filing was the largest municipal filing in U.S. history, drawing media attention across the nation.

Local commentator, Nancy Skinner  — a frequent guest on national news programs —  says coverage of the bankruptcy has been ill-informed and unfair.

"The LA Times, just a few years ago, said that Detroit was the new Hollywood. Their headline yesterday was: 'Detroit Broke, Calls It Quits,'" Skinner said.

She said some media outlets are making it seem like the city has closed up shop.

"You know, Detroit is gonna come back. It's a ridiculous notion to think that Detroit is just gonna somehow, you know, just become one big, vacant lot," Skinner said.

Skinner adds she has not seen any national media cover of the new business that have taken root in the downtown and mid-town areas.

Get complete coverage of Detroit's bankruptcy HERE.

(TM and © Copyright 2013 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2013 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)

View CBS News In
CBS News App Open
Chrome Safari Continue
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.