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Michigan Judge Adjourns Hearing On Detroit Pensions

Bankruptcy Looms for GM As Bond Holders Agree To Swap Debt For Equity

LANSING, Mich. (AP) — A Michigan judge has adjourned a hearing on a lawsuit filed by Detroit pension funds trying to keep city retirees’ payments from being cut during bankruptcy proceedings.

Ingham County Circuit Judge Rosemarie Aquilina on Monday said she will hear arguments in her Lansing courtroom in a week.

The state asked Monday to move the case to federal court.

Aquilina says she doesn’t want to “pre-judge” the motion, but sees the case as a state issue because the Michigan Constitution protects pension benefits and Michigan’s emergency manager law is in play. The judge last week ordered Gov. Rick Snyder to withdraw the bankruptcy petition.

Her decision was appealed to the state appeals court. Snyder declined to comment on the case during an interview with Detroit radio station WWJ.


Copyright 2013 The Associated Press.

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