Judge Overrules Both Challenges To Detroit Bankruptcy Filings

Source: Robert Snell, Mike Wilkinson and Chad Livengood / The Detroit News

Detroit— A bankruptcy judge on Wednesday afternoon overruled objections to city’s bankruptcy filing, freezing several lawsuits filed against the city and allows the bankruptcy case to proceed in federal court with jurisdiction.

U.S. District Judge Steven Rhodes also decided an automatic stay triggered by Detroit’s Chapter 9 filing extends to Emergency Manager Kevyn Orr, Gov. Rick Snyder and members of the restructuring team.

The decision would come after city lawyers — during a hearing that lasted almost two hours over the biggest municipal bankruptcy case in U.S. history — argued Wednesday morning that Detroit would be “irreparably harmed” if retirees are able to block its Chapter 9 filing.

Rhodes ordered recess shortly before noon and resumed the hearing shortly after at 2 p.m.

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