The city of Detroit wants a Bankruptcy Judge Steven Rhodes to disband a committee appointed to represent unsecured creditors, saying that it could disrupt mediation talks aimed at reaching a deal to help the Motor City speed an exit from its record-setting chapter 9 bankruptcy filing, the Detroit News reported today. Judge Rhodes has set a Feb. 19 hearing on the motion, which was filed on Friday. Federal mediators have been working for months to reach deals to help speed the city’s plan of adjustment. The mediation team has been working to raise pledges of $370 million from foundations, $350 million from the state and $100 million by the Detroit Institute of Arts in a bid to defray pension losses and protect the city-owned art from sale in bankruptcy. “The city believes that the appointment of the creditors’ committee comprised largely of parties already participating in mediation will not advance, and may well disrupt, the mediation,” the city said in its filing.
