Despite failure to negotiate in “good faith” Rhodes says state was justified in filing for bankruptcy
By Abayomi Azikiwe
Editor, Pan-African News Wire
Wednesday, December 4, 2013
Judge Steven Rhodes has ruled that a state-imposed emergency manager was acting legally when bankruptcy was filed over and above the objections of the people of Detroit. The judge also said that pensions guaranteed under the state constitution of Michigan could be diminished.
Rhodes said that even though Kevyn Orr, the emergency manager and a former partner to the corporate law firm Jones Day, did not negotiate in good faith with unions, pensioners and creditors, such a process was impractical. There was no recognition or acknowledgement of the role of the banks and corporations in the financial destruction of the city and its people in the today’s eligibility decision.