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Court Approves Extension of the Automatic Stay in Detroit’s Chapter 9 Case to State Officials



by Cadwalader Wickersham Taft LLP - New York Office

July 29, 2013

Previously published on July 26, 2013

On July 24, 2013, Judge Steven W. Rhodes of the Bankruptcy Court for the Eastern District of Michigan approved the City of Detroit’s motion to extend the automatic stay to various non-debtor parties, including certain state officials. The Court’s ruling effectively stays all pending litigation against the City, allows the City to continue to move forward with its chapter 9 case, and paves the way for a dispute over the City’s eligibility to file for chapter 9.


 

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