City of Detroit wants bankruptcy fast-tracked
Updated On: Jul 21 2013 04:53:15 PM EDT
The City of Detroit is requesting their bankruptcy proceedings be put on the fast-track. Late Friday, the city filed a motion requesting a quick hearing on certain initial motions.
The filing is asking a hearing be held Tuesday, July 23rd or "as soon thereafter as the Court’s schedule will permit."
The motions in question are related to setting a schedule for proceedings and establishing procedures for notifying the thousands of parties involved in the city’s bankruptcy case.
The filing also calls on the court to clarify certain rights given to the city and the emergency manager.
The motion states the city believes a fast hearing on these issues is in the best interests of the city, its creditors and all parties involved, and that an expedited hearing will help lay the groundwork for restructuring activities to allow the city to move forward.
No hearing date has been set by the court at this point.
The city filed for Chapter 9 municipal bankruptcy on Thursday and in doing so became the largest in U.S. history to file for bankruptcy protection.
While the filings continue in federal bankruptcy court, an Ingham County Circuit Court judge has set a set of show cause hearings for Monday morning in Lansing regarding what she calls the unconstitutional filing of Detroit’s request for Chapter 9 bankruptcy.
In an order Friday, Judge Rosemarie Aquilina said the bankruptcy filing must be withdrawn. Michigan’s Attorney General Bill Schuette has asked Michigan’s Court of Appeals to take a look at her ruling. They have not indicated whether they’ll consider the appeal.
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