This Sept. 19, 2013, file photo, shows the city of Detroit from midtown. AP
DETROIT, Michigan鈥擠etroit鈥檚 bankruptcy case is entering its most important stage so far as a judge decides whether the city is eligible to stay in court and fix billions in debt.
Judge Steven Rhodes promises to announce his decision Tuesday (Michigan time). If Detroit is declared eligible, it means the city can work on a plan to pay off creditors and emerge from bankruptcy with a clean balance sheet.
But if not eligible, Detroit probably would be forced to negotiate again with creditors, especially unions and pension funds. The city says it tried 鈥済ood-faith鈥� negotiations, a key condition under federal law, but couldn鈥檛 reach deals. Unions and pension funds say the talks weren鈥檛 meaningful.
With $18 billion in debt, Detroit鈥檚 bankruptcy is the largest filing by a local government in United States history.
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