Detroit's Bankruptcy Proceeding Continues
Published July 24th, 2013
A Michigan judge's attempt to halt Detroit's bankruptcy proceeding was blocked Tuesday by a higher court.
Tuesday's ruling by the Michigan court of appeals stays an order by a county circuit judge issued last Friday.
The judge had ruled that the bankruptcy violates a provision of the Michigan constitution that prohibits the cutting of pension and retirement benefits.
The bankruptcy would reduce the pension payments due to about 10,000 city employees and nearly 20,000 retirees.
The court fight over whether the bankruptcy will proceed is not over.
Detroit became the largest municipal bankruptcy filing in the nation's history last week.