If this stands – and it HAS already been appealed – this is, um, Things Go Boom Time.
U.S. Bankruptcy Judge Steven Rhodes ruled today that pensions of city retirees can legally be cut in Detroit’s bankruptcy — a decision that came as a significant surprise to people observing the case.
Rhodes emphasized he won’t necessarily allow pension cuts to be approved in the city’s final reorganization plan, called a “plan of adjustment.”
Rhodes previously signaled that he planned to decide the issue of whether the pensions can be cut later in the case. But today he said he changed his mind and decided ruling on the issue now would expedite the bankruptcy.