Michigan Wins Delay of Detroit Bankruptcy Challenge
This article is for subscribers only.
Michigan officials won a postponement of a state judge’s ruling that Detroit’s bankruptcy filing in federal court violated the state’s constitution, pending a consideration of Michigan’s appeal.
Detroit filed for Chapter 9 bankruptcy July 18, the biggest bid for court protection by a U.S. city. Michigan Circuit Court Judge Rosemarie E. Aquilina in Lansing ruled minutes after the filing that Governor Rick Snyder couldn’t authorize further actions that would impair or diminish public pension benefits, citing the Michigan constitution.