State judge orders Detroit to pull bankruptcy

ALJAZEERA: …Ingham County Circuit Court Judge Rosemarie Aquilina ordered Detroit’s state-appointed emergency manager, Kevyn Orr, to withdraw the federal bankruptcy petition he filed for the city on Thursday.

A first test in a Chapter 9 bankruptcy proceeding is whether the city has explored other reasonable options before filing, and Orr said the city would “have an eligibility fight” over the decision…

Al Jazeera’s Ash-Har Quraishi, reporting from Detroit, said that the legal wrangling over the bankruptcy “is only beginning”, as, even if the filing were deemed legal, a federal judge would still have “to evaluate and determine whether or not the city’s filing is eligible in fact to restructure the debt that they have”… (more)

Share

1 Comment

  1. It seems judge Aquilina is on shaky legal ground here and the state AG has rightly appealed her decision. Failing to not honor President Obama should not be a factor in this case. A case that is going to be difficult without political posturing.

    From the Detroit News:

    Prior to her ruling on Friday, the judge criticized the Snyder administration and Schuette’s office over their hasty move.

    “It’s cheating, sir, and it’s cheating good people who work,” the judge told assistant state Attorney General Brian Devlin. “It’s also not honoring the (United States) president, who took (Detroit’s auto companies) out of bankruptcy.”

    http://www.detroitnews.com/article/20130719/METRO01/307190099/Ingham-County-judge-rules-Detroit-bankruptcy-withdrawn?odyssey=tab|topnews|text|FRONTPAGE

Comments are closed.