Reuters News Quotes Special Counsel Benjamin D. Feder on Detroit Bankruptcy
July 22, 2013

Special counsel Benjamin D. Feder was mentioned in the Reuters News article “Can State Officials OK Detroit’s Bankruptcy.” The article discusses state constitutional safeguards for the pension benefits of municipal workers as an issue in the Detroit bankruptcy case. The article mentions the Michigan governor’s authority to approve Detroit’s Chapter 9 filings, and Mr. Feder notes that this authority is likely to come in an eligibility proceeding, a unique element of Chapter 9 bankruptcies. A fight over eligibility in this case is expected, including an argument by pensioners “that the city did not negotiate with them in good faith.” Mr. Feder is quoted as saying, “it would make sense for the bankruptcy judge to consider the governor’s authority in the context of eligibility..this is a gating issue.” Mr. Feder goes on to say, “if the bankruptcy court finds the governor improperly approved the Chapter 9 filing, the Michigan legislature may have to fix the state's procedures for authorizing municipal bankruptcies.”