Judge: Detroit Can Proceed with BankruptcyDecember 3, 2013 – In The News
Michael Sweet was quoted in the CNN Money article "Judge: Detroit Can Proceed with Bankruptcy." While the full text can be found in the December 3, 2013, issue of CNN Money, a synopsis is noted below.
A federal judge has ruled that the city of Detroit can proceed with its bankruptcy, the largest municipal bankruptcy in history.
The city’s plan could mean big cuts to the pension benefits and retiree health coverage that has been promised to city employees. While opponents have argued that pension cuts are barred by the state’s constitution, Judge Steven Rhodes ruled that pensions are fair game under federal bankruptcy law, trumping state law.
"He isn't going to do it lightly, and he recognizes the significance of these issues, but pension cuts are certainly on the table," said Michael Sweet.
Now that the city has been deemed eligible, Detroit can prepare a proposal for the court on how it will slash its debt, said Sweet.
"The big question looming out there is, 'Will the appeals slow the process down?'" he said.