Judge appoints mediator for Detroit bankruptcy

Judge handling Detroit's Chapter 9 bankruptcy case appoints federal judge as mediator

Associated Press

DETROIT (AP) -- The judge handling Detroit's Chapter 9 bankruptcy case has appointed Detroit chief federal judge Gerald Rosen as a mediator in the case.

Rosen said in a statement Tuesday that his aim is to bring those involved in the bankruptcy case together "in a neutral forum, away from the glare of the spotlight" and resolve as many disputes as possible. He says he'll work with a small team of other mediators.

The order from U.S. Bankruptcy Judge Steven Rhodes says "proceedings, discussions, negotiation and writings" from mediation will be confidential.

Detroit claims it has at least $18 billion in liabilities, from underfunded pensions and health care costs to bonds that lack city revenue to be paid off. The city is being run by state-appointed emergency manager Kevyn Orr, a bankruptcy specialist.

View Comments (11)