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Judge orders withdrawal of Detroit bankruptcy petition

Judge orders withdrawal of Detroit bankruptcy petition

A judge has ordered a Detroit petition for bankruptcy to be withdrawn. Photo: Associated Press

DETROIT (Reuters) – A Michigan judge on Friday ordered Detroit’s state-appointed emergency manager to withdraw the federal bankruptcy petition he filed for the city on Thursday.

Ingham County Circuit Court Judge Rosemarie Aquilina’s order said the 2012 Michigan law that allowed Governor Rick Snyder to approve the city’s bankruptcy filing, the largest municipal bankruptcy filing ever in the United States, violated the Michigan Constitution.

The declaratory judgment came in lawsuits filed this month by Detroit pension funds, retirees and workers, which sought to prevent a bankruptcy filing that would ultimately impair retirement benefits in violation of constitutional protections for those benefits.

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FILE - In this Nov. 3, 2002 file photo, Illinois state Treasurer Judy Baar Topinka participates in a Republican campaign rally in Springfield, Ill. Topinka, who won a second term for state comptroller in November 2014, died early Wednesday morning, Dec. 10, 2014, less than 24 hours after having a stroke, according to her office. She was 70. Topinka previously served three terms as Illinois state treasurer, was a former Illinois GOP chairwoman and ran for governor in 2006.

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