Claims It Fails to ‘Honor’ President Obama
A Michigan judge ruled Friday that Republican Gov. Rick Snyder’s Detroit bankruptcy filing is a violation of the state’s constitution and that it fails to “honor” President Barack Obama who “took (Detroit’s auto companies) out of bankruptcy.”
County Circuit Judge Rosemary Aquilina said she hopes Gov. Snyder “reads certain sections of the (Michigan) constitution and reconsiders his actions.”
(Related: Melissa Harris-Perry’s ‘Delusional’ Analysis of Bankrupt Detroit May Stun You)
“I have some very serious concerns because there was this rush to bankruptcy court that didn’t have to occur and shouldn’t have occurred,” Aquilina said.
“Plaintiffs shouldn’t have been blindsided,” and “this process shouldn’t have been ignored.”
Kevyn Orr, Detroit’s state-appointed emergency manager, filed for Chapter 9 protection on Thursday after two municipal pension funds moved to sue him in an attempt to protect retiree benefits.
Currently, both pension funds have claims to roughly “$9.2 billion in unfunded pension and retiree health care liabilities,” the Free Press reports.
The city’s debt and liabilities, Orr notes, could be as much as $20 billion.
State law protects pension benefits from being “diminished,” but filing in federal bankruptcy court takes away those protections.
After both funds moved to sue the emergency manager so at to protect retiree benefits, Orr had no choice but to file for Chapter 9.