Kevyn Orr

Opinion
11:29 am
Wed April 16, 2014

You don’t want to play poker with Kevyn Orr

Here’s the one thing certain about Detroit’s bankruptcy: You don’t want to play poker with Kevyn Orr.

The state-appointed emergency manager had everyone convinced city workers and retirees were facing a steep 26% cut in their pensions – a cut that would jump to 34% if they didn’t quickly approve the smaller amount.

The city was getting ready to mail them all ballots explaining the cuts and asking for their approval.

Then, voilà – yesterday, everything changed. Suddenly, negotiators came up with a deal whereby most pensions would be cut by less than 5%. Police and fire retirees pensions won’t be cut at all.

There seems little doubt that the 32,000 employees and retirees will approve this deal. Yet we need to remember two things. First of all, this is not final yet – not by a long shot.

Something else that’s still very uncertain has to happen first. The Michigan Legislature has to approve contributing $350 million to a fund designed to shore up the pensions and protect any of the work in the city-owned collections in the Detroit Institute of Arts from being possibly sold for the benefit of the creditors.

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Politics & Government
11:20 pm
Mon April 14, 2014

Bankruptcy case delays Detroit's usual budget process

Detroit’s bankruptcy case is throwing a wrench in the city’s usual budget process.

Detroit Mayor Mike Duggan didn’t give his charter-mandated city budget address as scheduled Monday.

Rather, officials told City Council members that Detroit needs to update its plan of adjustment first. That’s the city’s restructuring blueprint for getting through bankruptcy.

Detroit chief financial officer John Hill said that since the plan will shape the city budget, it doesn’t make sense start talking now.

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Law
9:11 pm
Fri April 11, 2014

Detroit bankruptcy judge ok's swaps settlement; says "now is the time to negotiate"

Judge Steven Rhodes approved a key settlement in Detroit’s historic bankruptcy case Friday.

The deal will settle a costly interest-rate swaps agreement with two banks, UBS and Bank of America, for $85 million.

Emergency manager Kevyn Orr has pushed hard for such a deal. Detroit had guaranteed the swaps with casino revenue, and paid out about $200 million since 2009.

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Opinion
10:14 am
Thu April 10, 2014

Detroit bondholders will be paid 74 cents on the dollar; working women can relate

If you heard my commentary yesterday on the latest in the Detroit bankruptcy battles, I began with the news that the city had reached a deal with the holders of its general obligation bonds.

All we knew then was that an agreement had been reached, and I said the bondholders were, to quote myself, “evidently going to settle for less than 20 cents on every dollar owed them.”

Well, I was astonishingly far off.

In fact, they ended up settling for 74 cents for every dollar. But there is a reason why I was so wrong.

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Law
11:43 am
Wed April 9, 2014

Breakthrough settlement announced in Detroit bankruptcy case

Kevyn Orr
Credit Sarah Cwiek / Michigan Radio

Mediators in Detroit’s bankruptcy case have made a potentially huge breakthrough with some of the city’s bondholders.

Bondholders are one of the city’s biggest groups of unsecured creditors.

That means they’re also one of the most important groups for emergency manager Kevyn Orr to get on board with his plan of adjustment, and avoid a protracted legal battle that could bog the city down in bankruptcy court for months or years.

Now, negotiators for the city and three major bond insurers have announced a settlement deal.

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Law
5:30 am
Mon April 7, 2014

Key ruling expected this week in Detroit bankruptcy

Judge Steven Rhodes will make a major ruling in Detroit’s ongoing bankruptcy case this week.

Rhodes will decide whether the city can settle an interest-rate swaps deal with two major banks for $85 million.

Detroit had hoped to hedge against interest rates rising when it entered into the swaps deal on some city pension debt in 2006.

But interest rates fell to nearly 0, and Detroit has been forced to shell out about $200 million to UBS and Bank of America since 2009.

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Stateside
4:53 pm
Thu April 3, 2014

Detroit bankruptcy struggle now affects Water and Sewerage Department

Credit Lester Graham / Michigan Radio

The spotlight of the Detroit bankruptcy struggle is widening. From the DIA to the retirees and now to water.

As the clock ticks, emergency manager Kevyn Orr has fired the latest salvo in the increasingly testy talks with county representatives over the future of the Detroit Water and Sewerage Department.

Detroit News business columnist Daniel Howes joined us today to discuss the issue.

Listen to the full interview above.

Politics & Government
10:04 pm
Tue April 1, 2014

Orr turns up the heat on Detroit pensioners; they push back

Retirees protest outside federal court in Detroit.
Credit Sarah Cwiek / Michigan Radio

Detroit pensioners are trying to turn up the heat on emergency manager Kevyn Orr Tuesday – just as he’s doing the same thing to them.

Protesters filled the street in front of Detroit’s federal courthouse on Tuesday to slam Orr’s proposed cuts to city pensions.

Orr filed a revised version of his bankruptcy restructuring plan there Monday. An earlier version, known formally as a plan of adjustment, was filed in February.

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Economy
12:11 pm
Thu March 27, 2014

Here's a short list of the 8 Detroit creditors who will win and lose the most

Courtesy of Bridge Magazine

Long before Detroit Emergency Manager Kevyn Orr rolled out his proposal in February for paying back the city’s creditors, bankruptcy experts knew the pain would not be spread evenly.

Because so much of the city’s debt – nearly $6 billion owed to pay back loans for the city’s sprawling water and sewer department – cannot be reduced in bankruptcy court, the creditors feeling the brunt of the cuts are retirees and city employees.

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Investigative
8:55 pm
Tue March 25, 2014

Detroit's emergency manager on bankruptcy developments

Detroit emergency manager Kevyn Orr spoke at the University of Michigan and took questions on the one-year anniversary of his appointment to guide the city through bankruptcy.
Credit Lester Graham / Michigan Radio

On the one-year anniversary of his appointment, Detroit’s emergency manager spoke about the latest developments in the city's bankruptcy in a speech at the University of Michigan.

One thing in the works is getting a $120 million loan from Barclays of London. A state board approved the loan today. The Detroit City Council also approved the deal, despite concerns that the money might be used to pay big-money bankruptcy consultants. But, emergency manager Kevyn Orr says, ‘not so.’

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Politics & Government
5:00 am
Wed March 19, 2014

Lease proposal: Joe Louis Arena to be darkened, demolished after Red Wings leave

The Detroit Red Wings’ owners will keep renting Joe Louis arena through at least 2015, according to a proposed lease presented to the Detroit City Council Tuesday.

City officials have already cleared the way for the Red Wings’ owners, Mike and Marian Ilitch, to build a new arena complex for the hockey team.

But the question remains about what to do with Joe Louis Arena, which the city of Detroit owns. Right now, the two sides are retroactively negotiating a lease agreement that expired in 2010.

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Stateside
10:48 pm
Thu March 13, 2014

Kevyn Orr reflects on his past year as Detroit's Emergency Manager

Kevyn Orr was appointed Emergency Manager one year ago tomorrow.

An interview with Detroit News Business Columnist Daniel Howes.

It's Thursday. Time for our weekly check-in with Detroit News Business Columnist Daniel Howes.

It’s hard to believe it will be one year ago tomorrow that Kevyn Orr was appointed Detroit's Emergency Manager. Orr sat down to talk to the Detroit News. What does he say about these past 12 months?

Daniel Howes joined us today.

Listen to the full interview above.

Stateside
4:25 pm
Tue February 25, 2014

Detroit bankruptcy reorganization plan in place; what's the next move for stakeholders?

Lester Graham Michigan Radio

It's been five days since emergency manager Kevyn Orr released the bankruptcy reorganization blueprint, which maps out a way to wipe out billions in debt, spend over half a billion in tearing down abandoned buildings and invest one billion to improve city services.

Now that all stakeholders have had a chance to digest the blueprint, the battle lines are being drawn.

Detroit Free Press columnist Rochelle Riley joined us today to give us a look ahead.

Listen to the full interview above.

Politics & Culture
4:19 pm
Tue February 25, 2014

Stateside for Tuesday, Feb. 25, 2014

We've almost all done it – you might have even done it just today: Made a purchase online.

But have you ever wondered why you have to pay sales tax on online purchases from some retailers like Target, but not others, like Amazon? There's new legislation in Lansing that might change that. We found out more on today's show.

Then, close your eyes. Now, picture a farmer. What comes to mind? You probably pictured a man, but more women are raising crops now in Michigan. We took a look at what's behind the rise in female farmers.

And, it was the most infamous event of one of the most painful and divisive times in Michigan's history. A new play at the Charles H. Wright Museum of African American History explores the Algiers incident which occurred during the Detroit riots. 

First on the show, it's been five days since emergency manager Kevyn Orr released the bankruptcy reorganization blueprint, which maps out a way to wipe out billions in debt, spend over half a billion in tearing down abandoned buildings and invest $1 billion to improve city services.

Now that all stakeholders have had a chance to digest the blueprint, the battle lines are being drawn.

Detroit Free Press columnist Rochelle Riley joined us today to give us a look ahead.

Investigative
7:00 am
Mon February 24, 2014

Detroit's infrastructure crumbling while city has trouble collecting cash

Compuware World Headquarters at Campus Martius is a gleaming example of the Detroit's downtown revival. It depends on the deteriorating infrastructure of the city.
Credit Lester Graham / Michigan Radio

The radio version of this story.

The plan to guide Detroit out of bankruptcy includes up to $150 million a year for ten years to repair neglected infrastructure.  The city could go a long way in paying for that if it can find a way to collect money already owed to it.

The Compuware World Headquarters building at Campus Martius is a gleaming example of a downtown revival.

But last week, just down the block, the façade of revival was peeled back for a moment. An old water pipe broke.

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Stateside
5:29 pm
Mon February 3, 2014

What do local leaders think about Detroit's bankruptcy now?

Detroit Emergency Manager Kevyn Orr has submitted a so-called “plan of adjustment” to Detroit creditors.

It’s been about six months since Orr filed for Chapter 9 bankruptcy for the city.

So, more than half a year later, what do local leaders in Michigan think about the bankruptcy?

Tom Ivako joined us today. He’s with the Center for Local, State and Urban Policy at the University of Michigan.

*Listen to the audio above.

Opinion
8:45 am
Mon January 13, 2014

Detroit's City Council might prolong state control

Lessenberry commentary for 1/13/14

If you own a hotel, this is a good week to be in Detroit, where thousands of journalists and auto industry people are flocking to town for the North American International Auto Show.

Hopefully this will bring some good publicity for the city, which badly needs it. Last week was a setback, especially in terms of city government. But I think most people don’t realize how damaging it was. More on this in a moment.

But first, this will be the first time ever that the auto show will be in a Detroit where the mayor is not the most powerful figure. Today, that would be emergency manager Kevyn Orr.

A week ago, we would have figured this was an anomaly, and that next year, Mayor Mike Duggan would be ready to welcome the auto buffs to a normal city where the elected officials were fully in charge. Now, however, that’s not so certain.

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Politics & Government
9:50 pm
Thu January 9, 2014

Orr's plan for Detroit delayed

Kevyn Orr
Credit Sarah Cwiek / Michigan Radio

DETROIT (AP) - Detroit's state-appointed emergency manager is delaying the release of his plan to shepherd the city through bankruptcy.

A spokesman for Kevyn Orr told The Associated Press on Thursday that no new date is being given for the report's release because the city is continuing mediation with creditors.

Orr had said he'd submit his plan to a federal bankruptcy judge in early January. The court-imposed deadline is mid-March.

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Politics & Government
5:00 am
Tue January 7, 2014

Detroit emergency manager "freezes" pension benefits, then backs off -- temporarily

Detroit emergency manager Kevyn Orr moved to “freeze” pension benefits for some city retirees — then suspended that action as the city and pension fund representatives talk in mediation.

Orr quietly issued that order late last month. It affects members of Detroit’s General Retirement System—not police officers or firefighters, who have their own, separate pension fund.

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Politics & Government
5:01 pm
Wed January 1, 2014

Duggan sworn in as Detroit's 75th mayor

Mike Duggan, after winning the Detroit mayoral primary.
Credit Sarah Cwiek / Michigan Radio

Wasting no time, Mike Duggan was officially sworn in as Detroit’s 75th mayor on New Year’s Day.

Duggan took the oath in a small interoffice ceremony, surrounded by his family.

He comes into office as Detroit’s fate hangs in the balance in bankruptcy cout, with his mayoral powers limited by emergency manager Kevyn Orr.

Orr and Duggan have a power-sharing agreement that gives the mayor control of most day-to-day city operations. Duggan says he’ll do what he can with that.

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