Detroit Judge Allows County Challenges to Debt-Cut Plan

Detroit’s debt-cutting plan can be challenged by nearby suburban counties when a trial over the feasibility of the proposal starts later this month, a judge ruled, increasing the opposition the city must overcome to end its $18 billion bankruptcy.

Macomb, Wayne and Oakland counties oppose various aspects of the city’s plan, mainly because the proposal would take money out of the Detroit water system to help bolster an underfunded pension fund for city workers. The counties say the transfer may increase utility bills for their residents, who rely on the city for water service.