Objections to Detroit bankruptcy filed

|By:, SA News Editor

Labor unions, pension funds and individuals have submitted their objections to Detroit's request for bankruptcy protection.

However, bondholders and bond insurers didn't file their opposition by last night's deadline despite the billions of dollars at stake. It wasn't immediately clear why not.

The arguments against Detroit's Chapter 9 filing include that it breaches state and national constitutions, that the city didn't negotiate in good faith, as it should have done, and that it hasn't proven that it's insolvent.

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