Detroit Emergency Manager testifies in court to prove he did not take the job to file for bankruptcy in the first place, and he did what he could to settle debts with creditors.
Emergency Manager Kevyn Orr Monday insisted in bankruptcy court that he had good intentions for the city and worked with creditors to reduce the city’s debts before filing for Chapter 9 protection in July, according to Michigan Live.
Labor unions and other city creditors claim Orr took over the city government in March predetermined to file for bankruptcy.
“Yes, absolutely,” Orr said when asked directly whether he negotiated with creditors in good faith before taking the city into bankruptcy proceedings. “What I said was ‘If there are any serious proposals, I’m a phone call away.'”
City attorney’s accuse Republican Gov. Rick Snyder of trying to take control of the city by putting Detroit’s 700,000 residents against his handpick Emergency Manger, favoring bondholders and banks over the city’s employees and its 23,000 retirees.
Detroit is deeply in debt and needs to prove to court that it is broke and tried in good faith to negotiate with creditors to be eligible for the largest municipal bankruptcy protection in US history.
Orr said Monday that when he took over the job, he was faced with high crime, blight and deplorable conditions of police equipment and facilities in Detroit. Police Chief James Craig has also 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.
Orr is a bankruptcy expert who represented automaker Chrysler LLC in its successful reconstruction. Detroit owes $18 billion in long-term debt, Orr said.
Gov. Snyder also is expected to testify on Monday.
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Source: Press TV