Gov. Snyder questioned under oath in Detroit bankruptcy case
"You were not really committed to working this problem out with me."
That's what Detroit union employees and retirees are saying about Michigan Governor Rick Snyder. They say he was working toward a bankruptcy filing for Detroit all along, and did not negotiate with them "in good faith."
It's a central argument in a court case attempting to stop approval of a Detroit bankruptcy. If it can be proven that the city or the state did not argue in good faith with creditors, it could be a reason to deny Chapter 9 bankruptcy for the city of Detroit.
The unions and retirees stand to lose a lot if the city moves through bankruptcy.
So Gov. Snyder is being questioned under oath this morning for three hours. The Detroit Free Press reports the deposition of a state governor in a bankruptcy case is likely a "historical first."
Attorneys for city employee unions and retirees want to question Snyder to advance their argument that Detroit was ineligible to file for bankruptcy because the city made no good faith effort ahead of the filing to negotiate with creditors.
The unions and retirees have argued in court filings that the hiring of Orr and the bankruptcy filing were planned out well in advance by Snyder and others as the only way to make massive cuts to city retirement obligations as part of a financial restructuring.
Gov. Snyder's spokeswoman said bankruptcy was "the last viable option to help get Detroit back on the path to being a great city again."