Detroit Seeks to Shield Snyder From Suits Over Bankruptcy
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Detroit’s first court hearing after filing the biggest U.S. municipal bankruptcy may determine whether Michigan Governor Rick Snyder can be insulated from lawsuits related to the case.
Chapter 9 of the U.S. Bankruptcy Code, which covers municipalities, typically prevents creditors from taking actions against the debtor that might interfere with reorganization. Kevyn Orr, the Detroit emergency manager, is scheduled to ask U.S. Bankruptcy Judge Steven Rhodes today to extend that immunity to Snyder.