Friday, July 19, 2013

Detroit Cannot File for Bankruptcy, Judge Rules

Judge Rosemarie Aquilina of the Ingham County Circuit Court ruled that Governor Rick Snyder and Emergency Manager Kevyn Orr violated both Michigan's Constitution and state law when they filed for chapter nine bankruptcy protection for the City of Detroit. She ordered Governor Snyder to direct Mr. Orr to withdraw Detroit petition for bankruptcy protection.

Quite frankly, I did not see this one coming. While I haven't studied the issue well enough to opine on Judge Aquilina's decision, I can say that this is yet another first sign that Detroit's bankruptcy process is going to be a long, drawn-out one.

The Detroit Free Press has more on this story on their website here.

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