Detroit lawyers filed bankruptcy protection
On Friday, lawyers for Detroit made their case for the city's request for bankruptcy. The Detroit attorneys said that filing for bankruptcy protection does not mean cutting down pensions. The filing of the case had also knocked down several objections towards the process.
The city must prove its eligibility for bankruptcy protection from creditors. This would be done through oral arguments that were scheduled later this month in the US Bankruptcy Court in Detroit.
The city refuted objections one by one as seen in the court papers filed last Friday. The objections came from unions, pension funds and other creditors who had been opposing the Detroit Bankruptcy petition. The series of court hearings for the bankruptcy request would start later this month.
According to Reuters report, the Detroit agreement had appeared to be well constructed to meet the qualifications of the Chapter 9 Federal Bankruptcy Code.