Detroit bankruptcy case put into the fast lane

The Detroit News reports:

For a town whose political and labor leaders are accustomed to moving in first gear — if at all — U.S. Bankruptcy Judge Steven Rhodes is throwing into overdrive the largest municipal bankruptcy in American history. In an order Wednesday, he stayed all litigation against the city and ruled that bankruptcy court has jurisdiction to decide whether Detroit’s Chapter 9 filing violates the state constitution’s protections for vested pension benefits. The decision sets a crisp tone and signals that the Detroit traditions of denial, delay and circular politicking are poorly suited to a speedy process driven by a federal judge. Lawsuits against the city during bankruptcy “are costly, expensive, inefficient” and can cause “prejudice” to the debtor, Rhodes said. He said his order enhances the likelihood of a Chapter 9 reorganization, speeds the bankruptcy case and cuts the cost to taxpayers.

When local "democracy" fails: a federal bankruptcy judge steps in.