Judge rules Detroit bankruptcy filing is legal:
A lawsuit seeking to stop Detroit's bankruptcy filing will not go
through, allowing the city to proceed with its petition under Chapter 9
of the bankruptcy code, a judge ruled Wednesday, according to news
reports. Detroit filed for bankruptcy last week after it failed to reach
agreements with its creditors outside of court, but was met with
lawsuits from pensioners and creditors arguing that the filing violated
the Michigan constitution. Next, Judge Steven Rhodes of the Eastern
District of Michigan Bankruptcy Court will decide whether the city is
eligible for bankruptcy protection, the first highly contested threshold
of the Chapter 9 process
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