Michigan Court of Appeals halts order requiring withdrawal of Detroit banruptcy filing

LANSING, Mich. (WXYZ) - The Michigan Court of Appeals has put a halt to all future proceedings in the cases brought by the Detroit pension funds in their attempts to halt the city's filing for Chapter 9 Bankruptcy protection.

The order staying the proceedings will remain in effect, pending the outcome of Governor Rick Snyder's appeal of an order by Ingham County Circuit Court Judge Rosmarie Aquilina.

Aquiina ordered Snyder to order the withdrawal of the bankruptcy petition, saying that it violated the Michigan Constitution's protection of public employee pensions.

In it's order, the Court of Appeals also set a deadline of 5:00 p.m. Friday for all parties in the case to submit their formal answers to the Governor's appeal.

Today's ruling comes less than 24 hours before the first hearing will be held in federal bankruptcy court. The judge in that court has already said he has jurisdiction over the state court because federal law supersedes state law when their is a conflict between the two,.

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