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

A preview to Detroit's historic bankruptcy ruling

Posted: Updated:
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

  • Download the FOX 2 Apps


  • FOX 2 News Five-Day Forecast
  • Local NewsLocal NewsMore>>

  • Some StubHub accounts breached

    Some StubHub accounts breached

    Wednesday, July 23 2014 4:34 PM EDT2014-07-23 20:34:20 GMT
    Six people were indicted Wednesday in an international ring that managed to take over more than 1,000 StubHub users' accounts and fraudulently buy tickets to such prime events as Jay-Z and Elton John concerts, a New York Yankees-Boston Red Sox game and Broadway shows like "The Book of Mormon," the Manhattan district attorney said. Manhattan District Attorney Cyrus R. Vance Jr. said the thieves would then resell the tickets and split up the proceeds.
    Six people were indicted Wednesday in an international ring that managed to take over more than 1,000 StubHub users' accounts and fraudulently buy tickets to such prime events as Jay-Z and Elton John concerts, a New York Yankees-Boston Red Sox game and Broadway shows like "The Book of Mormon," the Manhattan district attorney said. Manhattan District Attorney Cyrus R. Vance Jr. said the thieves would then resell the tickets and split up the proceeds.
  • FAA extends ban on U.S. flights to Tel Aviv

    FAA extends ban on U.S. flights to Tel Aviv

    Wednesday, July 23 2014 4:18 PM EDT2014-07-23 20:18:55 GMT
    The Federal Aviation Administration has extended the ban on U.S. carriers from flying to Tel Aviv for another 24 hours. Word came from the FAA at about 12:40 pm. on Wednesday, 24 hours after it issued its initial ban to Israel and following a rocket launch from Gaza that landed near the Ben Gurion airport.
    The Federal Aviation Administration has extended the ban on U.S. carriers from flying to Tel Aviv for another 24 hours. Word came from the FAA at about 12:40 pm. on Wednesday, 24 hours after it issued its initial ban to Israel and following a rocket launch from Gaza that landed near the Ben Gurion airport.
  • Bloomberg flies to Israel in show of support

    Bloomberg flies to Israel in show of support

    Wednesday, July 23 2014 4:12 PM EDT2014-07-23 20:12:27 GMT
    Former New York Mayor Michael Bloomberg flew to Israel via a commercial El Al flight despite an FAA ban on U.S.-based airlines flying to Tel Aviv. Israeli Prime Minister Benjamin Netanyahu met Bloomberg on the tarmac outside the El Al jet Wednesday at Ben Gurion International Airport.
    Former New York Mayor Michael Bloomberg flew to Israel via a commercial El Al flight despite an FAA ban on U.S.-based airlines flying to Tel Aviv. Israeli Prime Minister Benjamin Netanyahu met Bloomberg on the tarmac outside the El Al jet Wednesday at Ben Gurion International Airport.
Powered by WorldNow
Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | Terms of Service | Ad Choices