Connect to share and comment

Detroit tells court why it shouldn't be prevented from getting bankruptcy protection

PlacardEnlarge
(Globalpost/GlobalPost)

DETROIT - Attorneys hired by Detroit's state-appointed financial overseer have laid out their arguments for why a judge should reject attempts to prevent the city from getting bankruptcy protection.

The lawyers say in a 135-page document filed late Friday in federal court that Detroit's dire financial condition, problems providing necessary city services to residents, and other troubles can only be solved through bankruptcy.

The filing came at the court-ordered deadline for Detroit's response to more than 100 creditor objections filed last month to emergency manager Kevyn Orr's July 18 bankruptcy petition. It states that Detroit's $18 billion debt, more than 100,000 creditors, bonds, loans and dozens of city bargaining units "rendered any out of court solution impracticable."

Banks, bond holders and insurance companies are expected to file objections later this year.

http://www.globalpost.com/dispatch/news/the-canadian-press/130906/detroit-tells-court-why-it-shouldnt-be-prevented-getting-ban