Key hearing on Detroit's historic bankruptcy begins in federal court

Reuters News
Posted: Sep 02, 2014 3:40 PM

WASHINGTON (Reuters) - The key hearing in Detroit's historic municipal bankruptcy case began on Tuesday in a federal courtroom, where teams of attorneys were set to argue for and against the city's plan to adjust $18 billion of debt.

The confirmation hearing, which is scheduled to stretch through Oct. 17, will determine if the plan is fair and feasible.

In a pretrial conference earlier on Tuesday, Gregory M. Shumaker, a Jones Day attorney representing Detroit, told Judge Steven Rhodes the city may not finish laying out its case until the last week of September or the first week in October.

(Reporting by Karen Pierog; Editing by Diane Craft)