Kevyn Orr

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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Politics & Government
6:00 am
Fri December 20, 2013

Duggan, Orr reach power-sharing agreement in Detroit

Detroit mayor-elect Mike Duggan will have broad powers to run the city’s day-to-day business.

Duggan and emergency manager Kevyn Orr have reached a power-sharing agreement that gives Duggan control over most city functions.

While Duggan will have substantial operational powers, he’s also promised not to “interfere” with any of Orr’s financial control.

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Politics & Government
6:38 pm
Wed December 11, 2013

In his farewell speech Bing says, 'I will remain involved in Detroit's transformation'

Dave Bing

Detroit Mayor Dave Bing says he’s pleased with how his administration has “moved the needle forward on Detroit’s future.”

Bing talked about his accomplishments and challenges as mayor in a farewell speech to the Detroit Economic Club Wednesday.

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Stateside
4:47 pm
Thu December 5, 2013

Will the DIA survive Detroit's bankruptcy? A Detroit News columnist shares his thoughts

The Detroit Institute of Arts.
Flickr

What’s going to happen with the Detroit Institute of Arts?

That’s the question on the minds of many Michiganders after the city of Detroit was deemed eligible for Chapter 9 bankruptcy on Tuesday.

Daniel Howes, a business columnist with The Detroit News, talks with us about all things DIA — a recent appraisal of the institute’s collection, Emergency Manager Kevyn Orr’s interest in the museum, and a possible rescue plan cooked up by a federal judge.

Listen to full interview above. 

Politics & Government
8:38 am
Wed December 4, 2013

Lessenberry talks Detroit bankruptcy

Peter Martorano Flickr

This Week in Michigan Politics, Jack Lessenberry and Christina Shockley discuss Detroit's bankruptcy eligibility.

As many observers expected, Judge Steven Rhodes ruled yesterday that Detroit is bankrupt, and that the city can proceed with its Chapter 9 filing.  Judge Rhodes said the city did not negotiate in good faith with the creditors and it was clear the state planned the inevitable bankruptcy as soon as Kevyn Orr was named emergency manager for Detroit. Judge Rhodes also said public employee pensions can be cut as part of the restructuring. He also ruled Michigan's Emergency Manager law constitutional.

Click here to listen to the full interview

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Opinion
8:22 am
Mon December 2, 2013

What happens after the Detroit bankruptcy ruling

Lessenberry commentary for 12/2/13

Tomorrow morning, Federal Bankruptcy Judge Steven Rhodes will announce whether or not Detroit can file for bankruptcy. If, as expected, he does authorize this, it will mean grim times ahead.

The city almost certainly will lose some assets; creditors will get paid only a fraction of what they are owed, and elderly and retired city workers may lose at least some of their pensions.

None of this will be easy, or fun. But we all have to hope that is exactly what the judge does. Otherwise, the city will be in the position of a dying lamb among a flock of turkey buzzards.

The city has close to 100,000 creditors who together are owed probably more than $18 billion. If the judge rules Detroit is ineligible for bankruptcy, then that will take the freeze off all the lawsuits creditors filed against the city before the Motor City asked for bankruptcy protection back in July. 

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Politics & Government
9:50 pm
Thu November 21, 2013

Report questions assumptions behind Detroit bankruptcy

 A new report says declining revenues and bad Wall Street deals—not out-of-control spending or generous pension benefits--contributed the most to Detroit’s bankruptcy.

The report from the left-leaning think tank Demos also accuses Emergency Manager Kevyn Orr of attacking the problem in “inappropriate” ways that are “not rooted in fact.”

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Stateside
4:35 pm
Thu November 21, 2013

Will Detroit's new mayor work well with the emergency manager and governor?

Center, Detroit's Mayor-elect Mike Duggan
Duggan for Detroit

In the weeks after the Detroit’s mayoral election, a top aide to Gov. Rick Snyder recently quipped that “adults” are now running Detroit’s city hall.

Does that point to a better working relationship between the governor, Detroit’s Emergency Manager Kevyn Orr, and the city’s Mayor-elect Mike Duggan?

Detroit News Business Columnist Daniel Howes is taking a look at the relations between Detroit’s leadership and the governor’s office.

Listen to the full interview above. 

Law
7:00 am
Fri November 15, 2013

Detroit bankruptcy judge rejects bid to keep loan terms secret

The judge in Detroit’s bankruptcy case has denied a bid to keep some details of a controversial loan agreement secret.

Judge Steven Rhodes ruled Thursday that the city must disclose all the terms of a proposed loan from the British financial giant Barclays. That loan deal is as complex as it is controversial.

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Politics & Government
7:00 am
Fri November 15, 2013

In 'a big surprise' to Detroit leaders, state to pay little for city's restructuring consultants

Detroit’s elected leaders are shocked that the state has put a strict limit on how much it will pay for the city’s many restructuring consultants.

Under a memorandum of understanding signed last year, the state agreed to reimburse Detroit for half the cost of those outside contractors.

But Detroit’s finance director told the City Council Wednesday those reimbursements would be capped at $5 million.

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Politics & Government
7:00 am
Thu November 14, 2013

Duggan looks for smooth transition in Detroit

Mike Duggan
Credit Sarah Cwiek / Michigan Radio

Detroit’s next mayor says he’s making plans to hit the ground running—but it’s unclear what powers he’ll have to implement them.

Mike Duggan named former Detroit State Representative Lisa Howze and former Detroit Police Chief Ike McKinnon to co-chair his transition team Wednesday.

They’re looking for volunteers with expertise in various parts of city government to fill out the team.

Duggan says this team will come up with an operational plan—but whether he can implement it is another matter.

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Detroit bankruptcy
1:03 pm
Wed November 13, 2013

Judge will soon decide whether Detroit will get bankruptcy protection

The next steps for Detroit? This man will soon decide. Judge Steven Rhodes.
John Meiu Detroit Legal News Publishing LLC

Today is the last day U.S. Bankruptcy Judge Steven Rhodes will accept documents from all sides of the Detroit bankruptcy case.

Rhodes will then look at all the evidence and decide whether the city of Detroit can reorganize itself under Chapter 9 bankruptcy laws. 

Rhodes has heard a lot. The city's future path will be up to him.

His decision will be based upon a) whether the city truly has no other options to pay its debts, a b) whether the city negotiated in good faith with its creditors prior to saying bankruptcy was the only way.

No one seems to be arguing that the city has a viable way to pay its debts. And Daniel Howes of the Detroit News argues that defining "good faith" negotiations in exceedingly difficult in this case.

That's because Detroit owes money to nearly 100,000 creditors.

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Politics & Government
2:36 pm
Sat November 9, 2013

Detroit retiree health coverage OK through February

(file photo)
Steve Carmody/Michigan Radio

DETROIT (AP) - The city of Detroit is suspending a plan to change retiree health insurance, at least through February.

Emergency manager Kevyn Orr says his staff will negotiate with a committee created to represent retirees during the city's bankruptcy case. He hopes it will lead to a long-term solution.

The city had proposed shifting retirees to Medicare, effective Jan. 1. Retirees under age 65 would have been given a $125 monthly stipend to get their own insurance.

Politics & Government
7:51 am
Sat November 9, 2013

Lawyers wrap case in Detroit bankruptcy trial

(file photo)
Steve Carmody/Michigan Radio

DETROIT (AP) - Attorneys have ended final arguments in a rare trial to determine whether Detroit can become the largest municipality to fix its finances in bankruptcy court.

The daylong remarks Friday for and against a Chapter 9 reorganization now will be sorted out by Judge Steven Rhodes. He could take days to make the decision.

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Opinion
2:44 pm
Fri November 8, 2013

Merging Detroit and Wayne County is the only long-term strategy that makes sense

Lessenberry commentary for 11/8/2013.

Well, it was quite a week for our state’s largest city. Voters elected a white mayor for the first time since 1969.

Had you gone to Lloyds of London 10 years ago and bet that within a decade, America would have a black president and Detroit a white mayor, today you would be very rich indeed.

But in the city Cadillac founded, attorneys today will offer closing arguments in a trial to determine whether the city will be allowed to file for bankruptcy. While everything in Federal Judge Steven Rhodes’ courtroom is by the book, there is an element of Kabuki-theater unreality about it all.

Nobody really believes the application will be denied. If it were, creditors would tear what remains of Detroit apart with the efficiency of a pack of wolves with a lamb.

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Stateside
4:32 pm
Thu November 7, 2013

How will Detroit's new mayor work with Emergency Manager Kevyn Orr?

Right, Mike Duggan, the new mayor of Detroit
Sarah Cwiek Michigan Radio

On Tuesday, Mike Duggan won his campaign for mayor of Detroit, beating out Wayne County Sheriff Benny Napoleon 55% to 45%.

Now, the big question after Duggan’s victory: How will the new mayor and Emergency Manager Kevyn Orr work together? Will their relationship be more constructive than that of Orr and Mayor Dave Bing?

Daniel Howes, a business columnist with the Detroit News, talks to us about the new relationship between Duggan and Orr.

Listen to the full interview above.

Law
1:50 pm
Thu November 7, 2013

Former state Treasurer Andy Dillon finishes Detroit bankruptcy testimony

Former state Treasurer Andy Dillon.
Associated Press

Former state Treasurer Andy Dillon finished his testimonial in Detroit’s bankruptcy trial, bringing his three-day testimonial to a close.

On Tuesday, Dillon defended his recommendation for Detroit’s bankruptcy filing, saying it was a “last-resort option.” But some of Detroit's creditors are arguing that the decision to file for Chapter 9 bankruptcy was not exactly a last resort, but instead a quick decision that overlooked an opportunity to continue negotiations.

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Detroit bankruptcy
3:38 pm
Mon November 4, 2013

Orr questioned on 'sacrosanct' comment in Day 6 of Detroit bankruptcy trial

Here's the comment Detroit Emergency Manager Kevyn Orr made to a public meeting on June 10, 2013. It's on loop, in case you miss it the first go 'round:

This statement was played for the courtroom by a lawyer representing the city's pension funds. He was trying to prove that Orr misled pensioners days before proposing cuts to pensions.

The Detroit News' Chad Livengood and Robert Snell report on the exchange that followed:

“Despite the implications, I wasn’t attempting to mislead anyone,” Orr testified Monday under questioning from city attorney Greg Shumaker.

Orr’s answer caused U.S. Bankruptcy Judge Steven Rhodes to interrupt with a follow-up question.

“Excuse me one second,” the judge said. “What would you say to that retiree now?”

“I would say his rights are in bankruptcy now,” Orr told the judge. “I would say his rights are subject to the supremacy clause of the U.S. Constitution.”

“That’s a bit different than sacrosanct, isn’t it?” Rhodes replied.

Orr continued to deny allegations that there was no attempt to negotiate with creditors "in good faith" prior to the city's bankruptcy filing. It's a pivotal point lawyers for the city's creditors are trying to prove. If they can do it, the city might not be eligible to reorganize under the protection of federal bankruptcy laws.

Orr ended his testimony this morning around 11 a.m.

Next to the witness stand, Snyder aide Richard Baird and former state treasurer Andy Dillon.

Law
3:49 pm
Sat November 2, 2013

Detroit, bankruptcy creditors talking in private

(file photo)
Steve Carmody/Michigan Radio

DETROIT (AP) - While a judge determines the future of Detroit's bankruptcy case, key people are meeting behind the scenes to try to reach deals.

Private mediation sessions are scheduled for Wednesday, at the same time the city tries to convince a judge that Detroit is eligible to fix its debts in bankruptcy court. The trial in front of Judge Steven Rhodes started on Oct. 23.

Politics & Government
9:14 pm
Tue October 29, 2013

Highlights from Governor Snyder's, Kevyn Orr's testimony in Detroit bankruptcy trial

LiveStream

Both Detroit Emergency Manager Kevyn Orr and Governor Snyder testified this week in the trial that will decide whether Detroit is eligible for Chapter 9 bankruptcy protection.

Facing hours of pointed questions from lawyers for city unions, retirees, and pension funds, both Snyder and Orr said that bankruptcy wasn’t a foregone conclusion for Detroit.

But both also insisted the city was clearly insolvent, creditor talks had broken down into multiple lawsuits, and Orr had to move quickly.

“It was somewhat shocking how dire it was,” Orr testified.

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