Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Judge Speeds Up Detroit's Eligibility Hearing
Author: Joel R. Glucksman
Date: September 10, 2013
Key Contacts
Back
Legal commentators have noted that they expect the Detroit Chapter 9 bankruptcy case to be a tedious and time-consuming process. This projection has been supported by the large number of creditors filing objections seeking to prove that the city is not eligible to seek out bankruptcy protection. However, the bankruptcy judge who is overseeing the case appears to be attempting to speed up the process.
U.S. Bankruptcy Judge Steven Rhodes has announced that he will begin hearing legal arguments on September 18 about whether the city is eligible to file its unprecedented $18 billion-dollar bankruptcy case. This is well ahead of the October 23 date that Rhodes originally set to begin hearing oral arguments. Rhodes noted that given the number of creditors opposing the bankruptcy filing, it would be prudent to hear arguments earlier rather than later. Currently, 109 creditors are challenging the constitutionality of Detroit’s bankruptcy filing.
“The court … concludes that a prompt oral argument on these legal issues will promote just, speedy, and efficient determination of the city’s eligibility,” Rhodes wrote.
The judge also noted that he will not consider objections relating to potential cuts to city-worker pensions until a later date. In his order, Rhodes wrote that, while he “appreciates the extraordinary importance of the pension rights,” he will delay considerations about this issue until he makes a determination about Detroit’s eligibility. At present, unions and city workers are seeking to prove that pension rights are protected under Michigan’s state constitution.
Creditors, unions, and pension groups are expected to argue several factors that call into question the city’s ability to seek bankruptcy protection, including whether Detroit is insolvent, whether it negotiated with creditors in good faith to reach a resolution, and whether the large number of creditors made negotiations feasible, the Economic Times reports. Rhodes wrote that he will be focusing primarily on whether Detroit’s emergency manager Kevyn Orr can prove that the city is truly insolvent.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Does Your Homeowners Insurance Provide Adequate Coverage?
Your home is likely your greatest asset, which is why it is so important to adequately protect it. Homeowners insurance protects you from the financial costs of unforeseen losses, such as theft, fire, and natural disasters, by helping you rebuild and replace possessions that were lost While the definition of “adequate” coverage depends upon a […]
Author: Jesse M. Dimitro
Understanding the Importance of a Non-Contingent Offer
Making a non-contingent offer can dramatically increase your chances of securing a real estate transaction, particularly in competitive markets like New York City. However, buyers should understand that waiving contingencies, including those related to financing, or appraisals, also comes with significant risks. Determining your best strategy requires careful analysis of the property, the market, and […]
Author: Jesse M. Dimitro
Fred D. Zemel Appointed Chair of Strategic Planning at Scarinci & Hollenbeck, LLC
Business Transactional Attorney Zemel to Spearhead Strategic Initiatives for Continued Growth and Innovation Little Falls, NJ – February 21, 2025 – Scarinci & Hollenbeck, LLC is pleased to announce that Partner Fred D. Zemel has been named Chair of the firm’s Strategic Planning Committee. In this role, Mr. Zemel will lead the committee in identifying, […]
Author: Scarinci Hollenbeck, LLC
Novation Agreement Process: Step-by-Step Guide for Businesses
Big changes sometimes occur during the life cycle of a contract. Cancelling a contract outright can be bad for your reputation and your bottom line. Businesses need to know how to best address a change in circumstances, while also protecting their legal rights. One option is to transfer the “benefits and the burdens” of a […]
Author: Dan Brecher
What Is a Trade Secret? Key Elements and Legal Protections Explained
What is a trade secret and why you you protect them? Technology has made trade secret theft even easier and more prevalent. In fact, businesses lose billions of dollars every year due to trade secret theft committed by employees, competitors, and even foreign governments. But what is a trade secret? And how do you protect […]
Author: Ronald S. Bienstock
What Is Title Insurance? Safeguarding Against Title Defects
If you are considering the purchase of a property, you may wonder — what is title insurance, do I need it, and why do I need it? Even seasoned property owners may question if the added expense and extra paperwork is really necessary, especially considering that people and entities insured by title insurance make fewer […]
Author: Patrick T. Conlon
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Judge Speeds Up Detroit's Eligibility Hearing
Author: Joel R. Glucksman
Legal commentators have noted that they expect the Detroit Chapter 9 bankruptcy case to be a tedious and time-consuming process. This projection has been supported by the large number of creditors filing objections seeking to prove that the city is not eligible to seek out bankruptcy protection. However, the bankruptcy judge who is overseeing the case appears to be attempting to speed up the process.
U.S. Bankruptcy Judge Steven Rhodes has announced that he will begin hearing legal arguments on September 18 about whether the city is eligible to file its unprecedented $18 billion-dollar bankruptcy case. This is well ahead of the October 23 date that Rhodes originally set to begin hearing oral arguments. Rhodes noted that given the number of creditors opposing the bankruptcy filing, it would be prudent to hear arguments earlier rather than later. Currently, 109 creditors are challenging the constitutionality of Detroit’s bankruptcy filing.
“The court … concludes that a prompt oral argument on these legal issues will promote just, speedy, and efficient determination of the city’s eligibility,” Rhodes wrote.
The judge also noted that he will not consider objections relating to potential cuts to city-worker pensions until a later date. In his order, Rhodes wrote that, while he “appreciates the extraordinary importance of the pension rights,” he will delay considerations about this issue until he makes a determination about Detroit’s eligibility. At present, unions and city workers are seeking to prove that pension rights are protected under Michigan’s state constitution.
Creditors, unions, and pension groups are expected to argue several factors that call into question the city’s ability to seek bankruptcy protection, including whether Detroit is insolvent, whether it negotiated with creditors in good faith to reach a resolution, and whether the large number of creditors made negotiations feasible, the Economic Times reports. Rhodes wrote that he will be focusing primarily on whether Detroit’s emergency manager Kevyn Orr can prove that the city is truly insolvent.