DETROIT (AP) — Lawyers jammed a courtroom Wednesday for the first hearing in Detroit's bankruptcy case, as a judge set out to decide whether anxious city retirees can slow down the process with lawsuits in other courts.
Detroit is the largest U.S. city to file for bankruptcy protection. U.S. Bankruptcy Judge Steven Rhodes was not expected to dive into any numbers during the first hearing, but he may settle a dispute that looms as a big threat to the reorganization.
The city wants Rhodes to put a stop to lawsuits that aim to halt the bankruptcy process, especially after an Ingham County judge last week said state officials ignored the constitution and acted illegally in approving the Chapter 9 filing. Those cases remain alive, although the Michigan appeals court temporarily stopped any further proceedings Tuesday.
As lawyers for some of the thousands of creditors arrived Wednesday, they passed protesters holding a banner saying: "Cancel Detroit's debt. The banks owe us."
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