DETROIT (WWJ) – The 6th Circuit Court of Appeals in Cincinnati has just announced it will hear arguments to determine whether Detroit is eligible to file for bankruptcy.
It doesn’t change anything taking place right now, however should the court rule that the court is not eligible, the bankruptcy would be thrown out.
This appeal was filed by retirees who claim the city didn’t negotiate in good faith and wasn’t broke among other things before filing for bankruptcy.
“Don’t read into that … anything that says Judge Rhodes made a mistake,” said bankruptcy attorney, Doug Bernstein with Plunkett Cooney law firm in Birmingham, speaking live on WWJ Friday. “Judge Rhodes in making his ruling is very thorough, and I think the chances of having it reversed are less likely than more likely.”
Could the Detroit bankruptcy end up at the Supreme Court?
“It’s got the possibility if everybody really wants to fight, and are really that dissatisfied with Detroit’s proposed plan,” Bernstein said.
Meantime, Emergency Manager Kevyn Orr’s long-awaited plan of adjustment was released Friday. It spells out how pensioners, retirees, banks, bond insurers and other creditors will be treated as his team reduces Detroit’s $18 billion debt load.