WSJ: Bankruptcy Judges Share Insight on Chapter 9 Eligibility
The Wall Street Journal reported that U.S. Bankruptcy Judge Steven Rhodes will preside over a trial to decide whether the city of Detroit was eligible for Chapter 9 bankruptcy protection.
According to the article, Chapter 9 debtor eligibility consists of being an insolvent municipality that has authorization to file, among other things. The debates over whether the criteria are met make Chapter 9 stand out against other chapters of the Bankruptcy Code, the Journal said. Ron Oliner, Duane Morris restructuring partner, was quoted as saying, “Eligibility is a huge thing in [Chapter] 9, and in other chapters, it just sort of happens.”
To read the entire WSJ article, click here.
Previously on abfjournal: Bankruptcy Judge to Determine Detroit Protections, July 23, 2013