While there is a four page thread already discussing Detroit's bankruptcy, I'd like to discuss the legal (absent political/social concerns) aspects of the bankruptcy.
While I am not an attorney, I find this case to be fascinating and legally unprecedented; the size of the pension obligations owed (Orr has said that a majority of Detroit's debt consists of legacy pension obligations) is unprecdented for a city that has declared Chapter 9 bankruptcy.
There have been a few other instances similar instances(Jefferson County Alabama, Stockton California) the obligations owed by these municiplaties pale in comparison to what Detroit owes to its pensioners. In the prior instances, I believe the state stepped in and helped meet the financial shortfall. Is the state of Michigan in strong enough financial shape to pay out $10+ billion over the course of the 20-30 years as the pensioners age? I believe the answer to this question will be yes (frankly, there is no alternative; PBGC is only for non-government pensions), but it's going to be a very drawn out legal fight between the pensioners and the Lansing until then.
tldr; will this reach the supreme court?
ps - while initially researching this topic, I came upon this paper - http://www.aefpweb.org/sites/default/files/webform/Stuart_Buck,_Legal_Obstacles_to_Pension_Reform.pdf , which I thought was a great read