Detroit bankruptcy hearing on Friday

(WXYZ) - Detroit's bankruptcy case goes back to court on Friday.  Judge Steven Rhodes is expected to take up a few matters in a scheduling conference. 

Detroit is to file its list of creditors. Chief federal judge Gerald Rosen may also be appointed to be a mediator to handle smaller financial issues away from bankruptcy court.  Judge Rhodes will also discuss his limited role in this bankruptcy. 

The major issue of Michigan constitutional protections against cuts to public employee pensions is yet to be decided.  

Three lawsuits have been moved from state courts to federal bankruptcy court.  The city also wants to set up a creditor's committee of retirees to discuss cuts to pensions and retiree healthcare.  Two city retiree groups already filed objections to how this will be done. 

The Crow City employee pensions systems also plan to object to the city proposal.  The city pension systems are underfunded by $3.5 billion dollars. 

They are the two largest creditors. 

The judge on Friday will also set deadlines and a schedule.  Detroit has 20,000 retired and 10,000 active employees.  Most police and fire retirees do not draw Social Security in retirement.  Pensions average $30,000 annually. 

A trial on the city's eligibility to even be in bankruptcy court is tentatively set for October.  March of next year is tentatively set for the city to file its restructuring plan. 

Cameras are not allowed inside federal court but a live blog will be provided on WXYZ.com.

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