Detroit bankruptcy trial reveals new details, Snyder set to testify
Detroit’s ‘bankruptcy eligibility’ trial enters its fourth day today, with Governor Rick Snyder scheduled to testify.
So far, federal judge Steven Rhodes has heard municipal finance experts as well as Emergency Manager Kevyn Orr claim that the city’s Chapter 9 filing in July was the only option left to address major cash flow problems and billions in long term debt.
But attorneys representing creditors -- which include retired city pension holders and municipal unions -- are doing their best to persuade the judge that the filing was premature. That would keep alive hopes that the creditors’ benefits may be protected as the situation plays out in court.
We spoke with Detroit Free Press reporter Brent Snavely.