Issue link: https://mbozikis.ufcontent.com/i/1422521
235 On November 7, 2014, sixteen months after the bankruptcy filing, the Bankruptcy Court presiding over the case confirmed the City of Detroit's Chapter 9 plan of adjustment, following an out-of- court mediation process and negotiations involving retiree representatives, bond insurers, labor unions and other creditor representatives. B. Eligibility to Be a Chapter 9 Debtor 1. Debtors Under Chapter 9 of the Bankruptcy Code Section 109(c) of the Bankruptcy Code sets forth the eligibility requirements to file for protection under Chapter 9. The statute requires that a Chapter 9 debtor be a municipality and Section 101(40) of the Bankruptcy Code defines municipality as a "political subdivision or public agency or instrumentality of a State." The term covers a broad spectrum of entities, including cities, villages, towns, counties, boroughs, public improvement districts, school districts, and bridge and highway authorities and other revenue producing bodies that provide services paid for by the users. See In re County of Orange, 183 B.R. 594, 601 (Bankr. C.D. Cal. 1995). 130 accrued pension benefits, that are otherwise protected by the State's constitution. In re City of Detroit, Michigan, 504 B.R. 97 (Bankr. E.D. Mich. Dec. 5, 2013). There has not been appellate review of the decision based upon a consensual resolution among the parties. 130 Of note, however, while the term "State" as defined in the Bankruptcy Code includes the District of Columbia and Puerto Rico, it specifically carves out the District of Columbia and Puerto Rico from eligibility under Chapter 9 of the Bankruptcy Code. 11 U.S.C. ยง 101(52). Thus, municipalities of the District of Columbia and Puerto Rico are not eligible for relief under Chapter 9. See Commw. of Puerto Rico v. Franklin Cal. Tax-Free Trust, 136 S.Ct. 1938 (2016). As discussed below, however, Puerto Rico remains a "State" for other purposes related to Chapter 9. Id. at 1942. As a result, Federal legislation was passed to establish a judicial process for restructuring debt issued by United States territorial governments and their instrumentalities. Puerto Rico Oversight, Management, and Economic Stability Act, P UB. L. NO. 114-87 (2016).