DETROIT-U.S. Bankruptcy Court Judge Steven Rhodes said that he will announce a decision on Dec. 3 on whether the city of Detroit is eligible to proceed under bankruptcy protection.

A nine-day trial over the city's eligibility for bankruptcy concluded on Nov. 8 that pitted labor unions and pension funds against the city. The unions and pension funds argued that Detroit was not eligible for bankruptcy protection because it did not engage in good faith negotiations prior to its bankruptcy filing in July. The city on the other hand, claims it did enough the preceding four weeks to be eligible for bankruptcy protection, according to Crain's Detroit.

The city filed for bankruptcy as a means of dealing with $18 billion in debt. Kevyn Orr, the emergency manager for the city of Detroit, has warned of chaos if the city is deemed not eligible for bankruptcy protection. See story in Crain's Detroit Business.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM Digital Member, you’ll receive:

  • Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

John Jordan

John Jordan is a veteran journalist with 36 years of print and digital media experience.