Detroit EM says bankruptcy filing unavoidable - New York News

Detroit EM says bankruptcy filing unavoidable

Posted: Updated:
  • Detroit BankruptcyMore>>

  • Schuette endorses Detroit art deal in bankruptcy

    Schuette endorses Detroit art deal in bankruptcy

    Tuesday, June 17 2014 1:47 PM EDT2014-06-17 17:47:06 GMT
    Michigan Attorney General Bill Schuette has given his blessing to a deal that transfers control of art to the Detroit Institute of Arts.
    Michigan Attorney General Bill Schuette has given his blessing to a deal that transfers control of art to the Detroit Institute of Arts.
  • Detroit files plan to fix debt, leave bankruptcy

    Detroit files plan to fix debt, leave bankruptcy

    Friday, February 21 2014 12:49 PM EST2014-02-21 17:49:57 GMT
    Detroit's emergency financial manager filed a plan Friday that would bring the city out of bankruptcy, providing a detailed look at what the Motor City would look like when it finally sheds its financial burdens.
    Detroit's emergency financial manager filed a plan Friday that would bring the city out of bankruptcy, providing for the first time a detailed look at what the Motor City would look like when it finally sheds its financial burdens.
  • Gov. Snyder: 'Detroit's comeback is underway'

    Gov. Snyder: 'Detroit's comeback is underway'

    Friday, February 21 2014 11:35 AM EST2014-02-21 16:35:28 GMT
    Gov. Rick Snyder issued the following statement today on the filing of a plan of adjustment by  Detroit Emergency Manager Kevyn Orr that is part of the city's restructuring.
    Gov. Rick Snyder issued the following statement today on the filing of a plan of adjustment by  Detroit Emergency Manager Kevyn Orr that is part of the city's restructuring under Chapter 9 of the U.S. Bankruptcy Code.
DETROIT (AP) -

Detroit's emergency manager testified Monday that he had thought as late as June that a bankruptcy filing could be avoided but that he knew time was running out for the city and its creditors to agree to concessions.

Testifying on the fourth day of a trial to determine whether Detroit is eligible to fix its finances in bankruptcy court, emergency manager Kevyn Orr said he received a couple of counter-proposals from creditors, but none from unions or retirees before filing for bankruptcy protection in July.

"Anyone paying attention knew the time had come to make some very difficult decisions," Orr said of a June meeting with hundreds of the city's creditors. "We were in a financial emergency and were going to have to move very quickly."

Detroit must show it is broke and tried in good faith to negotiate with creditors. Attorneys who oppose the filing seeking the largest municipal bankruptcy protection in U.S. history have tried to build a case that bankruptcy was a predetermined course or inevitable outcome.

Orr said Friday that filing for bankruptcy wasn't a condition of his employment. He is expected to be grilled by attorneys representing unions and pension funds, who say the city didn't hold genuine talks and therefore the case should be thrown out.

He said Monday that after he took the job he saw firsthand the high crime, blight and deplorable conditions of police equipment and facilities in Detroit.

"I knew things were bad," Orr testified. "It was somewhat shocking ... just how dire it was."

Orr, a bankruptcy expert who represented automaker Chrysler LLC during its successful restructuring, has said the city is saddled with $18 billion in long-term debt. He and Police Chief James Craig both have testified about the city's dire straits.

"Detroit spends more than it takes in. It is clearly insolvent on a cash-flow basis," Orr testified as he read from a report he issued in spring after 45 days as emergency manager.

Republican Gov. Rick Snyder also is expected to testify Monday. The trial could end next week, but a decision on Detroit's eligibility appears to be several more weeks away. The judge has set a Nov. 13 deadline for lawyers to file legal briefs on certain issues.

  • Local NewsLocal NewsMore>>

  • Two teens shot and killed on Detroit's west side

    Two teens shot and killed on Detroit's west side

    Monday, September 1 2014 12:20 AM EDT2014-09-01 04:20:04 GMT
    Two families are grieving after the bodies of two teenagers -- a boy and a girl -- were found in the street Sunday morning on Detroit's west side. Both were shot and killed.
    Two families are grieving after the bodies of two teenagers -- a boy and a girl -- were found in the street Sunday morning on Detroit's west side. Both were shot and killed.
  • Traveling Vietnam memorial wall stops in Hamburg

    Traveling Vietnam memorial wall stops in Hamburg

    Monday, September 1 2014 12:07 AM EDT2014-09-01 04:07:54 GMT
    It was a somber evening Sunday in Hamburg in Livingston County. A large crowd turned out to see the Vietnam traveling memorial wall.
    It was a somber evening Sunday in Hamburg in Livingston County. A large crowd turned out to see the Vietnam traveling memorial wall.
  • Man claims he was beaten by discount store clerk

    Man claims he was beaten by discount store clerk

    Sunday, August 31 2014 11:56 PM EDT2014-09-01 03:56:19 GMT
    "He put his hand on me and slammed me into the racks, put me in a (mixed martial arts) arm bar, then put me in a choke hold," Lacey Wheeler said.
    "He put his hand on me and slammed me into the racks, put me in a (mixed martial arts) arm bar, then put me in a choke hold," Lacey Wheeler said.
  • Download the FOX 2 Apps


  • FOX 2 News Five-Day Forecast
  • Local NewsLocal NewsMore>>

  • Suspect, rookie officer both wounded in gunfire

    Suspect, rookie officer both wounded in gunfire

    Sunday, August 31 2014 10:11 PM EDT2014-09-01 02:11:38 GMT
    Authorities say an early morning gunfire exchange on a Brooklyn street has left the suspect hospitalized and a police officer with a graze wound.
    Authorities say an early morning gunfire exchange on a Brooklyn street has left the suspect hospitalized and a police officer with a graze wound.
  • New MTA bus routes take effect

    New MTA bus routes take effect

    Sunday, August 31 2014 9:51 PM EDT2014-09-01 01:51:36 GMT
    MTAMTA
    The MTA has new bus routes throughout the 5 boroughs. 
    The MTA has new bus routes throughout the 5 boroughs. 
  • 3 hurt in lightning strike as storms batter NYC area

    3 hurt in lightning strike as storms batter NYC area

    Sunday, August 31 2014 9:47 PM EDT2014-09-01 01:47:41 GMT
    Heavy thunderstorms swept through the tri-state on Sunday causing flash floods and lightning strikes that injured 3 people. The three men were struck at Orchard Beach in the Bronx Sunday afternoon and were being treated at a local hospital. Meanwhile, various Labor Day weekend celebrations were interrupted, delayed and even canceled as the U.S. Open tennis tournament had to be postponed and the Electric Zoo musical festival on Randall's Island had to be prematurely shut down.
    Heavy thunderstorms swept through the tri-state on Sunday causing flash floods and lightning strikes that injured 3 people. The three men were struck at Orchard Beach in the Bronx Sunday afternoon and were being treated at a local hospital. Meanwhile, various Labor Day weekend celebrations were interrupted, delayed and even canceled as the U.S. Open tennis tournament had to be postponed and the Electric Zoo musical festival on Randall's Island had to be prematurely shut down.
Powered by WorldNow
Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | New Terms of Service What's new | Ad Choices