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Detroit EM Says Bankruptcy Filing Unavoidable

Detroit Bus Drivers Hold Work Stoppage, Protest Working Conditions
Photo by Joshua Lott/Getty Images

DETROIT (AP) — Detroit’s state-appointed emergency manager says that a month before the city filed for bankruptcy he thought it could be avoided but only with concessions from creditors that never came.

Kevyn Orr testified Monday, the fourth day of a hearing. Michigan Gov. Rick Snyder, who hired Orr in March, is also scheduled to testify.

Orr filed for bankruptcy in July — making Detroit the largest municipality to do so. Orr started his testimony last week saying that filing for bankruptcy wasn’t a condition of his employment.

Detroit must show it is broke and that it tried in good faith to negotiate with creditors. Unions and pension funds claim the city didn’t hold genuine talks and therefore the case should be dismissed.

Orr says Detroit is saddled with $18 billion in debt.


Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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