Bankruptcy Judge Steven Rhodes on Friday refused to recommend the U.S. 6th Circuit Court of Appeals expedite an appeal of the city’s eligibility for chapter 9 bankruptcy relief, the Detroit News reported on Saturday. Judge Rhodes denied a request from city unions, pension funds and retiree groups that are fighting the city’s eligibility for bankruptcy relief and the judge’s ruling that pensions can be cut in bankruptcy court. “Rather, should the Court of Appeals authorize the direct appeals, the Court recommends that it consult with the mediator in the case, Chief District Judge Gerald Rosen, on whether expediting this ... appeal is in the best interest of the city, its creditors and its residents,” Rhodes wrote in a 30-page memo filed Friday. The judge’s decision could slow an appeal aimed at insulating retiree pensions from cuts in bankruptcy court and let the city continue its fast-track plan to restructure $18 billion in debt. The American Federation of State, County and Municipal Employees will ask the Sixth Circuit to expedite the appeal despite the judge’s recommendation, the union’s labor lawyer Michael Artz said Friday.
