This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/news/world-us-canada-23381456

The article has changed 7 times. There is an RSS feed of changes available.

Version 1 Version 2
Detroit bankruptcy petition must be withdrawn, judge rules Detroit legal battle over bankruptcy petition
(about 1 hour later)
A judge in the US state of Michigan has ordered the withdrawal of a federal bankruptcy petition filed for the city of Detroit on Thursday. A judge in the US state of Michigan has ordered the city of Detroit to withdraw its application for bankruptcy over its debts of $18bn (£12bn).
Judge Rosemarie Aquilina said the petition violated Michigan law and the state constitution. Judge Rosemarie Aquilina said the petition, filed on Thursday, violated the state's laws and constitution because it threatened pension benefits.
But the state's attorney general immediately appealed against the order.
Earlier, Governor Rick Snyder said the move towards bankruptcy would reverse decades of decay.Earlier, Governor Rick Snyder said the move towards bankruptcy would reverse decades of decay.
Detroit, the birthplace of the US car industry, has racked up debts of $18bn (£12bn) over several decades. Bankruptcy would allow Detroit's state-appointed emergency manager, Kevyn Orr, to liquidate the city's assets to satisfy creditors and pensioners.
Public services are nearing collapse and about 70,000 properties lie abandoned. Pensions
Bankruptcy would allow Detroit's state-appointed emergency manager, Kevin Orr, to liquidate the city's assets to satisfy creditors and pensioners. Mr Orr proposed a deal in June in which creditors would accept 10 cents for every dollar they were owed.
About $9bn of Detroit's debt is owed to the pension funds and retiree healthcare benefits of the city's 10,000 workers and 20,000 retirees. But two pension funds representing retired city workers have resisted the bankruptcy plan, and - with tens of thousands of creditors - the city is already facing a number of lawsuits.
Mr Orr proposed a deal in June in which creditors would accept 10 cents for every dollar they were owed. Two pension funds representing retired city workers are resisting the plan, and - with tens of thousands of creditors - Detroit is already facing a number of lawsuits. In her ruling on Friday, Circuit Judge Rosemarie Aquilina sided with the pension plaintiffs, ruling that the Michigan constitution and law prohibit actions that will lessen the pension benefits of public employees.
As the city went ahead to file for bankruptcy, Circuit Judge Rosemarie Aquilina filed orders relating to three of those lawsuits.
She said the Michigan constitution prohibits actions that will lessen the pension benefits of public employees, the Detroit Free Press reports.
"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," Judge Aquiline is quoted as saying."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," Judge Aquiline is quoted as saying.
"Plaintiffs shouldn't have been blindsided" and "this process shouldn't have been ignored". "Plaintiffs shouldn't have been blindsided" and "this process shouldn't have been ignored", she said.
The Detroit Free Press reports that the state's Attorney General Bill Schuette will appeal against Judge Aquilina's rulings and seek emergency consideration by the Michigan Court of Appeals. Shortly after, Michigan Attorney General Bill Schuette said he would appeal against Judge Aquilina's rulings.
'Basically broke'
Detroit is the largest US city ever to file for bankruptcy. In 2012, three smaller California cities - Stockton, Mammoth Lakes and San Bernardino - took the step.
Public services in Detroit are nearing collapse and about 70,000 properties lie abandoned.
Known as Motor City for its once-thriving automobile industry, Detroit stopped debt repayments to unsecured creditors last month to keep the city running.
About $9bn of Detroit's debt is owed to the pension funds and retiree healthcare benefits of the city's 10,000 workers and 20,000 retirees.
Earlier on Friday, Gov Snyder said the city had filed for bankruptcy on because it was "basically broke".
"We're the comeback state in Michigan, but to be a great state, we need Detroit on the path to being a great city again," he told Friday's news conference.
"Now is the opportunity to stop 60 years of decline," he added.
"We will come out with a stronger, better Detroit and a format to grow this city. The citizens of not just this city but the state deserve it."