CNN Money reported in “Judge: Detroit can proceed with bankruptcy,” that:
“A federal judge has given a green light for Detroit to proceed with its bankruptcy, the largest municipal bankruptcy in history.
“The ruling opens the door for the city to cut billions of dollars in payments that are owed to city employees, retirees, investors and other creditors.
“Unions and pension funds had argued that the city should not be eligible to use bankruptcy court protections. They said that regardless of the Detroit’s financial troubles, city and state officials did not negotiate with creditors in good faith in an effort to reach a deal on its liabilities.”