A federal court agreed on Friday to suspend seven cases seeking to overturn a lower court ruling that found Detroit was eligible for municipal bankruptcy, Reuters reported on Friday. The Sixth Circuit U.S. Court of Appeals' action followed motions filed on Thursday by attorneys for Detroit pension funds, unions and others requesting that the cases be suspended instead of dismissed until the city concludes a confirmation process for its bankruptcy exit plan. The appeals court had initially scheduled oral arguments for July 30 for the seven cases. But those proceedings were eventually canceled at the request of the city and the appealing parties due to actual or pending settlements. Instead of dismissals, the parties asked the court to hold off on ruling on any issues in the cases, adding however that the appeals process could be resumed if Detroit's current plan to adjust $18 billion of debt is changed or fails to be confirmed. Hon. Steven W. Rhodes has set an Aug. 21 start date for the confirmation hearing, which will determine whether the plan is fair and feasible.
