A Michigan judge ruled that the city of Detroit could not file for Chapter 9 municipal bankruptcy last week, saying that the bankruptcy would violate the state’s constitutional obligations to its citizens. Citing the state’s charter and President Barack Obama’s stated commitment to the city’s workers, Ingham County Circuit Judge Rosemarie Aquilina halted the bankruptcy filing. On Wednesday, a federal judge overturned Aquilina’s ruling. According to Detroit News, the judge ruled that federal courts now have jurisdiction over Detroit’s bankruptcy filing.
“It’s cheating, sir, and it’s cheating good people who work,” judge Aquilina told assistant Michigan Attorney General Brian Devlin last week. “It’s also not honoring the (United States) president, who took (Detroit’s auto companies) out of bankruptcy.”
“I know he’s watching this,” she added.
On Wednesday, a federal judge overturned Aquilina’s ruling.
h/t Breaking News
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