How Detroit’s Bankruptcy Eligibility Trial Will UnfoldOctober 21, 2013 – In The News
Michael Sweet was quoted in the Detroit Free Press article "How Detroit’s Bankruptcy Eligibility Trial Will Unfold." While the full text can be found in the October 21, 2013, issue of Detroit Free Press, a synopsis is noted below.
Detroit will attempt to prove it is bankrupt on Wednesday, as the city’s bankruptcy eligibility trial is set to begin. The ruling in the eligibility hearing will determine whether the city is able to secure court protection from creditors and slash billions in debt and liabilities.
“What happens if he rules them ineligible for bankruptcy?” said Michael Sweet. “Everyone is even worse off with a ruling by the judge that there wasn’t eligibility.”
Perhaps the topic of hottest contention in the case, a decision on whether pensions can be cut will not be decided in the eligibility hearing.
“Even if Judge Rhodes believes that the Michigan Constitution prevents the pensions from being impaired, that’s not an argument to be decided” during the eligibility trial, Sweet said.