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Detroit bankruptcy appeal declined by state judge

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July 20
1:43 PM 2013

The city of Detroit's request for Chapter 9 bankruptcy protection was asked by a judge in Michigan to be withdrawn. Over US$18 billion worth of municipal debt was involved in the bankruptcy filing.

According to presiding Judge Rosemarie Aquilina, the petition for a Chapter 9 bankruptcy protection by the city of Detroit was in violation of Michigan's laws and the constitution in general. She said that pension benefits will be threatened if the filing pushes forward.

Michigan's attorney general appealed against Aquilina's order. Governor Rick Snyder told reporters that the move will be beneficial to the deteriorating city, saying that it will turn the tables for Detroit's economy.

Pension plaintiffs argued that the bankruptcy would jeopardize the pension benefits of state and government employees. Siding with the pension fund complainants, Aquilina ruled the bankruptcy filing's withdrawal on Friday.

The motion against the judge's decision was made by Michigan Attorney General Bill Schuette.

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