A preview to Detroit's historic bankruptcy ruling - New York News

A preview to Detroit's historic bankruptcy ruling

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Judge Rhodes Judge Rhodes
(WJBK) -

Detroit is now less than 24 hours away from finding out if it is eligible to file for Chapter 9 Bankruptcy. Judge Steve Rhodes has said he will announce his decision Tuesday at 10 a.m.

Judge Rhodes will answer the following questions in his ruling: Is Detroit insolvent? and, Did Detroit negotiate with its creditors in good faith before filing the bankruptcy? "Good faith" meaning a fair negotiation, and if the judge finds that it was impossible to bargain he can still allow the bankruptcy.

Attorneys representing Michigan Gov. Rick Snyder and Detroit's emergency manager argue that the July bankruptcy filing came after careful, deliberate planning. They say it was a last resort after all options had been exhausted.

But retirees, unions and pension funds say Snyder and emergency manager Kevyn Orr had their sights on bankruptcy for months and didn't engage in good-faith negotiations.

Many are waiting for the ruling to learn the fate of city employee pensions and healthcare and the DIA art collection, among other issues. Fox 2's Charlie Langton says he does not believe the fate of those issues will be addressed Tuesday in the judge's ruling, but they will be addressed when the city comes up with a plan to reorganize its debt of approximately $18 billion.

VIDEO: Click on the video player above to hear a breakdown of the ruling from Fox 2 Legal Analyst Charlie Langton

Fox 2 will have extensive coverage of the ruling:

 + Tune in to Fox 2 News on your TV

 + Tune in to Fox 2 News on your tablet, computer or mobile device via our livestream inside the app or on www.myfoxdetroit.com

 + Click here to see live blog updates from inside the courtroom

 + Follow us on Twitter @Fox2News

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