Bankruptcy Court: Judge sets, then re-sets, hearing on legal issues

Bankruptcy Court: Judge sets, then re-sets, hearing on legal issues

Earlier this week, Judge Steven Rhodes identified 14 legal issues that need to be decided before the city of Detroit’s “trial” on its plan to exit bankruptcy. They include a range of topics including whether Macomb, Oakland and Wayne counties have “standing” to object to the city’s Disclosure Statement and Plan of Adjustment (as they have done in legal filings), if some provisions of the plan violate state or federal law, and whether the plan legally handles plaintiffs with pending civil rights claims against the city.

He had set a date in June for a hearing about them. Today, after attorneys filed several briefs outlining why they needed more time to prepare for and make their arguments on the select issues, he moved the hearings to July 16 and 17.

Meanwhile, several creditors continue to argue for delaying the July 24 date for the confirmation hearing/trial on the plan. The Detroit News reports:

The creditors argue Detroit has delayed turning over documents and that they need more time to prepare for trial. The new proposed trial date is Sept. 18 and will determine whether Rhodes approves the city’s debt-cutting plan.

We’ll see if moving the hearing on the legal issues, now set for just a week before the trial date, is an indication that the city’s confirmation hearing also will be moved.