Detroit manager quizzed about bankruptcy decision

10/29/2013
ASSOCIATED PRESS
Emergency manager Kevyn Orr
Emergency manager Kevyn Orr

DETROIT  — Detroit’s emergency manager says he took the city into bankruptcy in July after making no progress with creditors.

Referring to lawsuits by Detroit retirees and legal challenges to much-needed revenue from casinos, Kevyn Orr said today that “things were starting to spiral out of control.”

Orr is back in the witness chair at a trial to determine if Detroit’s bankruptcy case can move ahead. He says the city has $18 billion in debt and needs Chapter 9 to reorganize.

Unions and pensions funds say Detroit didn’t negotiate in good faith before the filing. They want the case thrown out.

Michigan Gov. Rick Snyder testified Monday that bankruptcy was a “last resort” but the right decision. He appointed Orr and approved the bankruptcy.