The largest-ever municipal bankruptcy petition in U.S. history faces a watershed moment today as the judge overseeing Detroit's bankruptcy case is scheduled to rule whether the city is eligible for protection from creditors, Reuters reported yesterday. Bankruptcy Judge Steven Rhodes has scheduled a hearing for 10 a.m. EST today to announce his decision, which will be followed by the release of a written opinion. No matter how Judge Rhodes rules, the case could drag on through a possibly lengthy appeals process that could delay the city's plan to submit its plan of readjustment by the end of the month. The city's largest union has asked Rhodes to allow any appeal to proceed directly to the U.S. 6th Circuit Court of Appeals, bypassing the U.S. District Court in Detroit.
