The Michigan Court of Appeals yesterday ordered a temporary halt to three lawsuits that seek to derail Detroit’s municipal bankruptcy after the state’s attorney general sought to overturn lower court rulings, including one that found the bankruptcy filing unconstitutional, Reuters reported yesterday. The lawsuits were filed by city workers, retirees and pension funds earlier this month in anticipation that the bankruptcy petition by Detroit would lead to cuts in retirement benefits. A three-judge panel of the appeals court said that it stayed the lower court orders and any other proceedings in the lawsuits challenging the bankruptcy until the appeal by Attorney General Bill Schuette is resolved or the appeals court issues a further ruling. Bankruptcy Judge Steven Rhodes will hold a hearing today on a request by the Detroit emergency manager Kevyn Orr to extend chapter 9’s automatic stay on legal action to the lawsuits filed by the unions and others. Read more:
http://www.reuters.com/article/2013/07/23/usa-detroit-lawsuits-idUSL1N0…
ABI will be holding a media teleconference today at 3:30 p.m. ET to examine Detroit’s chapter 9 filing and what lies ahead. There are a limited number of spaces available to listen to the live program. If you would like to listen, please contact ABI Public Affairs Manager John Hartgen at jhartgen@abiworld.org.