Detroit's public-employee pension funds, bondholders, bond insurers, vendors, retirees and legions of others expected to oppose the city's bankruptcy filing have until the end of the day today to file objections in U.S. Bankruptcy Court, Reuters reported today. Thus far, only a few former city workers have filed objections with the court in Detroit ahead of the deadline of 11:59 p.m. ET set by Bankruptcy Judge Steven Rhodes. For Detroit's chapter 9 municipal bankruptcy to proceed, Judge Rhodes must first find that the city has proven that it is insolvent and that it has negotiated in good faith with its creditors, or that there were too many creditors to make negotiations feasible. Judge Rhodes has scheduled Oct. 23 for the start of a hearing to determine whether Detroit is eligible to file for chapter 9. Detroit's retirement systems for municipal, police and fire workers last week said that they plan to file objections to the bankruptcy and will cite a prohibition in the Michigan Constitution against impairing vested retirement benefits for public workers.
