Detroit bankruptcy judge allows appeal of eligibility, pension rulings
Source: Detroit News
Detroit -- A bankruptcy judge Monday allowed creditors to appeal his recent eligibility and pension rulings directly to the U.S. 6th Circuit Court of Appeals.
The decision by U.S. Bankruptcy Judge Steven Rhodes followed several requests from unions, pension funds and retiree groups, who are fighting the city's eligibility for Chapter 9 bankruptcy relief and the judge's ruling that pensions can be cut in bankruptcy court.
Creditors pushed for an expedited appeal, arguing the bankruptcy case has implications on the treatment of vested pensions by bankrupt municipalities nationwide. Rhodes did not immediately rule on the expedited request.
"This is an issue of national importance," said Sharon Levine, lawyer for the city's largest union, the American Federation of State, County and Municipal Employees.
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