Union, Retirees Argue Against Detroit Bankruptcy

Union, Retirees Argue Against Detroit Bankruptcy

Lawyers for city unions and retirees are presenting reasons why Detroit's historic bankruptcy request should be denied.

Federal Judge Steven Rhodes is holding hearings Tuesday and Wednesday ahead of next week's trial to determine whether Detroit is eligible for bankruptcy.

Retiree committee attorney Claude Montgomery says bankruptcy shouldn't be allowed. The committee wants to prevent state-appointed emergency manager Kevyn Orr from cutting municipal pensions as he tries to rid Detroit of $18 billion or more in debt.

Unions and retirees say pensions are protected by Michigan's Constitution. Orr has said federal bankruptcy law supersedes state law.

Rhodes said Orr's July 18 bankruptcy petition hasn't resulted in payments being cut and questioned if the pension arguments are premature.

Orr's filing made Detroit the largest U.S. city to file for bankruptcy protection.


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