Dire Predictions if Detroit Bankruptcy is Rejected

Nov 14, 2013 1:40 PM

DETROIT (AP) - Detroit's summer bankruptcy filing has given the city some breathing room to pay bills and provide services while keeping creditors at bay. But officials are predicting a crisis if the judge throws the case out of court.

A decision from Judge Steven Rhodes is expected any day. Detroit can use bankruptcy to fix $18 billion in debt only if the judge finds the city met certain steps. Unions and pension funds are opposed, claiming a lack of genuine negotiations before the filing.

Detroit's emergency manager hasn't specified what would happen if the bankruptcy fails. Experts say the city would be at the mercy of unpaid creditors in a blizzard of lawsuits.

Residents, meanwhile, are welcoming improvements, especially new streetlights. Sam Walker says a new light on his block improves safety.

(Copyright 2013 The Associated Press. All rights reserved.


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