DETROIT (AP) — Detroit's bankruptcy case is going to trial, and the result will determine whether the city can reshape itself in the largest public bankruptcy filing in U.S. history.
Detroit filed for Chapter 9 protection in July, flattened by at least $18 billion in debt. But nothing can happen until a judge finds the city actually is eligible to be in bankruptcy court.
Unions and pension funds claim Detroit flunks the test because it failed to hold "good-faith" negotiations earlier this year, a key point in bankruptcy law. The city denies it and says it has met its burden.
The trial starting Wednesday is expected to last several days with testimony from emergency manager Kevyn Orr and possibly Gov. Rick Snyder, two key people who approved the bankruptcy filing three months ago.