Detroit Bankruptcy Judge Proposes Mediator for Toughest Disputes
By Tom Hals, Reuters, August 5, 2013
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The bankruptcy judge overseeing Detroit’s historic bankruptcy filing has proposed appointing a federal judge as mediator to hash out the most difficult disputes as the city struggles to resolve more than $18 billion in bond and pension obligations.
U.S. Bankruptcy Judge Steven Rhodes has proposed appointing federal judge Gerald Rosen to oversee confidential mediation, if it is needed.
The proposal was filed Tuesday afternoon, included in a list of issues to be heard on August 2.
The city filed the largest municipal bankruptcy in U.S. history last week. Its proposed restructuring of its obligations has sparked outrage from city retirees whose pensions and benefits could be cut drastically.
Rhodes heard opening salvos in court on Wednesday on the city’s bid for bankruptcy protection.
The proposed mediation order would allow Rhodes to send any matters to Rosen or another mediator of Rosen’s choosing. The mediation sessions would be confidential and protected from discovery, according to the court filing.
