The federal judge overseeing Detroit’s record $18 billion bankruptcy is trying to reduce the number of legal disputes he must resolve before the start of trial on the city’s debt-adjustment plan next month, Bloomberg News reported today. Bankruptcy Judge Steven Rhodes today began two days of hearings on about a half-dozen technical matters raised by opponents of the bankruptcy, including whether the counties surrounding Detroit have a right to challenge the city’s plan. By culling the issues, Judge Rhodes is seeking to focus the trial on disputes over the basic facts underlying the city’s proposal. Detroit is trying to win court permission to cut at least $7.4 billion in unsecured debt owed to bondholders, public employees and retirees.
