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Tue July 16, 2013
Detroit's emergency manager, 'financial condition of Detroit continues to be dire'
Those were Kevyn Orr's words in his latest quarterly report.
The Detroit Free Press' John Gallagher drew "8 key points" from the report, one of them being:
Without any change in direction, Detroit’s mounting debt obligations, pension and health care obligations will swell to almost 65% of total city revenues by 2017, up from 42.5% today. No other major city has similar obligations exceeding 20% of revenues.
The report doesn't say anything about bankruptcy, which Governor Rick Snyder confirmed.
A story from The Detroit News explained that under the emergency manager law, Orr has to ask for Snyder's approval before filing for Chapter 9 bankruptcy.
"I wouldn't do that without a recommendation from Kevyn, and a recommendation has not come to me at this point in time," Snyder told reporters Tuesday morning after speaking at the Michigan State University Ag Expo's 34th annual breakfast.
There are also reports that Orr may strike a deal with Bank of America Corp. and UBS AG to avoid further financial turmoil.
Here's Kevyn Orr talking with the media after his first meeting with Detroit creditors last month. Orr said Detroit can look at New York City as example of how a major city can emerge from financial restructuring. New York went through a major restructuring process in the 1970s.
-- Lucy Perkins, Michigan Radio Newsroom
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