Andy Dillon expressed concerns about Detroit bankruptcy - New York News

Andy Dillon expressed concerns about Detroit bankruptcy

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 (AP) -- Eight days before Detroit filed for bankruptcy, Michigan's state treasurer expressed concern about the move, saying he agreed with it but wondered if the city first should give creditors a "take-it-or-leave-it demand before we pull this trigger," according to an email revealed in court Tuesday.
 
Andy Dillon, who resigned last week, was called as a trial witness by unions opposed to Detroit's Chapter 9 filing. Unions and pension funds want the judge to dismiss the case, claiming the city failed to hold "good-faith" negotiations, an important step for a local government to be eligible to restructure in bankruptcy court.
 
Dillon had a key role in trying to repair the city's finances from the time he took office in 2011 as an appointee under Republican Gov. Rick Snyder. On July 10, he wrote an email to Detroit emergency manager Kevyn Orr in response to a draft of Orr's bankruptcy recommendation.
 
"I don't think we are making the case why we are giving up so soon to reach an out-of-court settlement. Looks premeditated," Dillon wrote. "I think we may want a take-it-or-leave-it demand before we pull this trigger. I agree with the recommendation but I don't think we make the case."
 
Dillon testified Tuesday that he had no further input in Orr's recommendation to the governor, who approved the bankruptcy on July 18. He said bankruptcy seemed inevitable after Orr in June offered creditors just 10 cents on every dollar owed. The city says it has debt of $18 billion.
 
"I became very skeptical that an out-of-court solution could happen," Dillon testified.
 
He said he was more concerned about Detroit's ability to pay for retiree health care than its ability to cover pensions, which are underfunded by $3.5 billion.
 
"The number was relevant but not the driving factor to whether (bankruptcy) was necessary," Dillon said of pensions.
 
The Michigan Constitution protects public pensions, but the bankruptcy case will test that provision. In an email to the governor before the bankruptcy, Dillon said there are a "lot of creative options" to explore with pensions.
 
But when asked in court if he subsequently proposed any, Dillon said no.
 
Orr, who was appointed by the governor in March, has defended his actions with creditors, noting that four weeks passed between a meeting to describe the city's finances and the bankruptcy filing.
 
But the UAW's chief lawyer, Michael Nicholson, portrayed Orr and his team as inflexible. He said attendees weren't always free to speak at private meetings and instead were required to put questions on cards.
 
"I've never been in negotiations where only one side speaks," Nicholson testified Tuesday.
 
He acknowledged the UAW had no interest in negotiating pension cuts because public pensions are protected under the state constitution. But he said he was willing to put together a coalition to talk about health insurance.
 
"Mr. Orr never responded. ... They never took us up on it," Nicholson said.

  • Local NewsLocal NewsMore>>

  • Report: Joan Rivers on slow road to recovery

    Report: Joan Rivers on slow road to recovery

    Tuesday, September 2 2014 1:08 PM EDT2014-09-02 17:08:01 GMT

    Hollywood icon Joan Rivers, 81, is reportedly on a slow road to recovery after she went into cardiac arrest at a New York City doctor's office. Rivers remains in serious condition at The Mount Sinai Hospital in Manhattan, according to her daughter, Melissa Rivers.  Doctors were expected to slowly remove Rivers from a medically-induced coma on Tuesday to asses her brain functionality.

    Hollywood icon Joan Rivers, 81, is reportedly on a slow road to recovery after she went into cardiac arrest at a New York City doctor's office. Rivers remains in serious condition at The Mount Sinai Hospital in Manhattan, according to her daughter, Melissa Rivers. Doctors were expected to slowly remove Rivers from a medically-induced coma on Tuesday to asses her brain functionality.

  • Crash in Lincoln Tunnel causes major delays

    Crash in Lincoln Tunnel causes major delays

    Tuesday, September 2 2014 12:33 PM EDT2014-09-02 16:33:28 GMT
    One of the tubes of the Lincoln Tunnel was closed for nearly four hours after a chain-reaction accident involving a New York-bound jitney bus and two other vehicles. Port Authority of New York and New Jersey spokesman Steve Coleman says three people were reported injured in the accident in the center tube at about 8:30 a.m. Tuesday.
    One of the tubes of the Lincoln Tunnel was closed for nearly four hours after a chain-reaction accident involving a New York-bound jitney bus and two other vehicles. Port Authority of New York and New Jersey spokesman Steve Coleman says three people were reported injured in the accident in the center tube at about 8:30 a.m. Tuesday.

  • $2.4B Revel casino shuts down after just 2 years

    $2.4B Revel casino shuts down after just 2 years

    Tuesday, September 2 2014 10:47 AM EDT2014-09-02 14:47:40 GMT
    Revel in Atlantic City, New Jersey. (Photo courtesy Revel Entertainment)Revel in Atlantic City, New Jersey. (Photo courtesy Revel Entertainment)
    Revel Casino Hotel closed its doors Tuesday morning, a little more than two years after opening with high hopes of turning around Atlantic City's struggling casino market.
    Revel Casino Hotel closed its doors Tuesday morning, a little more than two years after opening with high hopes of turning around Atlantic City's struggling casino market. The 5:25 a.m. casino shutdown followed the closure of its hotel on Monday. By mid-September, four of Atlantic City's 12 casinos will have closed, but none will be a costlier failure than Revel.
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