December 2, 2013

WSU law professors comment on Detroit's anticipated Chapter 9 bankruptcy eligibility ruling

In separate interviews, law professors Peter Henning and Laura Bartell commented on the anticipated ruling today on Detroit's eligibility for Chapter 9 bankruptcy. Bartell predicted Judge Rhodes will shy away from offering any hints on pensions. "People read all sorts of things into any remark a judge might make in an opinion," she said. "If he wants to send a signal, he can certainly put something in there to send a signal." Henning said, "If the city were not to be allowed to go forward with the bankruptcy, it would face thousands of lawsuits because it hasn't been paying its debts since the initial bankruptcy filing. So what you would have is a number of different creditors filing for claims, and they could even try to seize assets."

http://www.freep.com/apps/pbcs.dll/article?AID=2013312020116
http://mms.tveyes.com/Transcript.asp?StationID=340&DateTime=12%2F3%2F2013+7%3A43%3A27+AM&LineNumber=&MediaStationID=340&playclip=True&RefPage=

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