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| Version 0 | Version 1 |
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| Detroit's bankruptcy case in court | Detroit's bankruptcy case in court |
| (about 1 hour later) | |
| A federal judge will start hearing arguments on Wednesday as to whether the city of Detroit should be granted protection from its creditors. | A federal judge will start hearing arguments on Wednesday as to whether the city of Detroit should be granted protection from its creditors. |
| With $18bn (£11bn) of liabilities Detroit's case is the biggest municipal bankruptcy filing in US history. | With $18bn (£11bn) of liabilities Detroit's case is the biggest municipal bankruptcy filing in US history. |
| Union and pension fund representatives will argue against the bankruptcy filing as they want to preserve payments to former city workers. | Union and pension fund representatives will argue against the bankruptcy filing as they want to preserve payments to former city workers. |
| They say that city officials have not properly negotiated with creditors. | They say that city officials have not properly negotiated with creditors. |
| Good faith | Good faith |
| According to the unions and pension funds, Detroit's emergency manager, Kevyn Orr, did not hold formal negotiating sessions before filing for bankruptcy. | According to the unions and pension funds, Detroit's emergency manager, Kevyn Orr, did not hold formal negotiating sessions before filing for bankruptcy. |
| They are also likely to argue that the city is not bankrupt and has assets that can be sold, including pieces from the Detroit Institute of Arts. | They are also likely to argue that the city is not bankrupt and has assets that can be sold, including pieces from the Detroit Institute of Arts. |
| City managers say they have negotiated in good faith and bankruptcy is the only way to manage Detroit's $18bn (£11bn) in debts and liabilities. | City managers say they have negotiated in good faith and bankruptcy is the only way to manage Detroit's $18bn (£11bn) in debts and liabilities. |
| Half of the city's liabilities result from payments to retired staff, which includes healthcare and pension obligations. | Half of the city's liabilities result from payments to retired staff, which includes healthcare and pension obligations. |
| "There are only so many things they can fight about," said John Pottow, a University of Michigan professor who specializes in bankruptcy law. | "There are only so many things they can fight about," said John Pottow, a University of Michigan professor who specializes in bankruptcy law. |
| "They can fight about the solvency and they can fight about the negotiating in good faith." | "They can fight about the solvency and they can fight about the negotiating in good faith." |
| Lawyers from both sides will present evidence and call witnesses before the federal bankruptcy judge, Steven Rhodes. | Lawyers from both sides will present evidence and call witnesses before the federal bankruptcy judge, Steven Rhodes. |
| He has allotted 10 days for hearings over the next three weeks, although the hearings could take less time than that. | He has allotted 10 days for hearings over the next three weeks, although the hearings could take less time than that. |
| He will then decide whether Detroit merits protection from its creditors under Chapter 9 of the US bankruptcy code, which would allow the city to reorganise its debts. | He will then decide whether Detroit merits protection from its creditors under Chapter 9 of the US bankruptcy code, which would allow the city to reorganise its debts. |
| In May Mr Orr presented a report on Detroit's financial situation. | |
| It said Detroit's expenditures had exceeded revenues by an average of $100m each year from 2008 to 2012. |