U.S. Bankruptcy Judge Steven Rhodes turned down objections from unions, pension funds and retirees and opined the city of Detroit is eligible for Chapter 9 bankruptcy protection.
“This once proud and prosperous city cannot pay its debts. It is insolvent. It’s eligible for bankruptcy,” Rhodes said. “But it also has an opportunity for a fresh start” (Semuels & Muskal, 2013).
Appeals were expected to be filed (Davey, Vlasic & Walsh, 2013).
References
Davey, M., Vlasic B., & Walsh M.W. (2013, December 3). Detroit Ruling on Bankruptcy Lifts Pension Protections. New York Times. Retrieved December 3, 2013, from http://www.nytimes.com/2013/12/04/us/detroit-bankruptcy-ruling.html?hpw&rref=us&_r=0
Semuels, A. & Muskal, M. (2013, December 3). Bankruptcy protection offers hope for Detroit, setback for its unions. LA Times. Retrieved December 3, 2013, from http://www.latimes.com/nation/la-na-1204-detroit-bankruptcy-20131204,0,1471741.story#ixzz2mTkii7gE