Orr on Friday said he suspected the city will face an eligibility fight, which would also include whether or not the city made a good faith effort to negotiate with creditors over its more than $18 billion of debt.
Judge Rhodes also set an Aug. 2 hearing in federal court on Orr's motion on procedural matters, including deadlines, schedules, the assumption of leases and contracts, and the appointment of a retired employees' committee.
Detroit, a former manufacturing powerhouse and cradle of the U.S. automotive industry and Motown music, has struggled for decades as companies moved or closed, crime became rampant and its population shriveled by about 25 percent in the past decade to 700,000. The city's revenue failed to keep pace with spending, leading to years of budget deficits and a dependence on borrowing to stay afloat.
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