Local 4 is inside federal court as Judge Steven Rhodes presides over a status conference in Detroit's Chapter 9 bankruptcy case.

Complete coverage: Detroit Bankruptcy

10 a.m.

There are about 30 people inside the courtroom. Those inside the courtroom are not showing many facial expressions. Judge Rhodes is doing most of the talking. He wants to get right to the point - focusing on courtroom deadlines.

10:05 a.m.

Judge Rhodes told the courtroom the courts role in this case is to resolve legal issues the parties raise as the city movies through process. He said there are two main challenges we can expect the city to face: Establish that it is eligible if it meets that challenge and to establish plan that meets requirements

He said the parties may present other issues to the court: Whether to approve cities assumption and rejection to contracts and whether to approve of certain settlements. Judge Rhodes will determine what dates and deadlines to set as the case comes to a conclusion whatever it may be. He requested input from attorneys as well as their full cooperation. He said he recognizes and appreciates public interest and facilitate to the greatest extent possible

Judge Rhodes emphasized in this chapter 9 case the city has elected and appointed officials and officers remain in full control of the city and its main operations and as a result court has no role to play in managing or running the city. He said any complaints should be continued to be directed to the city and there is nothing the court can do about those matters. He said Chapter 9 states it is the role of the city to see if the city meets requirements for Chapter 9 - but not the responsibility of the city to dictate.

Read:Detroit's bankruptcy judge releases proposed deadlines in case

10:24 a.m. 

David Heiman addresses the court. He is a bankruptcy and restructuring attorney and has played a key role in many of the largest Chapter 11 and out-of-court business restructuring in the United States.

Heiman: We all know we are in a very serious situation here, so rather than drag everybody through the blow by blow… would like to refer the court to the declaration.. pgs 52-73. There has been a significant effort into preparing that and was followed up by meetings with creditors. Proposal 128 pages made public on the city website for all to see and from our standpoint we feel we have done our best to lay open the relevant aspect to the city’s finances to everyone. We have had discussions in the last week and scheduled for next week. In terms of the status of discussions it is clear there are differences

Differences aren't surprising in terms of the limited resources that the city has available. There was a proposal made and it is out on the table.

We are continuing to talk. We will hopefully continue to talk everyday as we attempt to get through this case. There are significant differences, which are based on our limited resources to pay our creditors and their perspective to complaints

How to Reach differences:

By Orr’s team of professionals to make himself available..

I believe we have had constructive discussions that have been civil and friendly and when it comes to the point when saying how do you view our proposal? No one likes it

We welcome the idea of mediation because there are very serious issues here, we have limitation.. we would like to talk to creditors consistently

Proposed dates and deadline - schedule for resolution of eligibility

1.     Did the city negotiate in good faith?

2.     Did the governor properly authorize in light of what is argued to be the constitutional protection of rights

Rhodes- does anyone see any other eligibility issues?

10:35 a.m.

Many representatives in the courtroom seem to be concerned about some an August 29th hearing deadline that has been suggested - saying there just isn't enough time to prepare.

11:29 a.m.