In so many ways, the trial set to begin Tuesday in Detroit over the city’s proposed plan to emerge from bankruptcy will be unprecedented. Never before has a city anywhere near this size filed for Chapter 9 protection, and never before has a court in a Chapter 9 case had to contend with so many complexities. Detroit Bankruptcy Judge Steven Rhodes will face issues that have never been tested in court, and there’s scant case law to guide him.
The judge will have to decide if the city’s 1,034-page “Plan for the Adjustment of Debts,” which includes some extraordinary features, is feasible, fair and in good faith. The trial is expected to last six weeks and include the testimony of dozens of witnesses, including Kevyn Orr, the former Jones Day partner who has been the city’s emergency manager since March 2013, as well as Detroit Mayor Mike Duggan.
