Court lifts block on Detroit bankruptcy

Jul 23, 2013

Downtown Detroit skyline
Credit Wikimedia Commons

A Lansing judge's ruling that ordered Governor Rick Snyder to withdraw the Chapter Nine bankruptcy filing for the City of Detroit has been overturned. The Gongwer News Service reports that the Michigan Court of Appeals issued its order Tuesday afternoon. It not only lifted the injunction by Ingham County Circuit Judge Rosemarie Aquilina but also ordered her to have no further involvement in the case.

Aquilina's ruling came in a lawsuit seeking to block the bankruptcy filing by Detroit City workers and retirees. Aquilina said the bankruptcy violated Michigan's constitution. The Appeals Court has not said whether or not it will grant an appeal request by state Attorney General Bill Schuette.