Wrinkles in Detroit’s Bankruptcy Filing
Some of the mind-bending details that might otherwise be overlooked.
Published: July 31, 2013
Graves, however, pointed out another potential stumbling block.
Along with proving insolvency, Orr and his legal team also have to clearly demonstrate they bargained in good faith with creditors, and completely exhausted all efforts to reach some sort of settlement — before filing for bankruptcy.
“Did he do that?” Graves asked about Orr. From where he’s sitting, Graves isn’t certain, saying the bankruptcy filing could have been premature, possibly in an attempt to keep aforementioned state challenges from moving forward.
“I am still puzzled as to why this case was filed in a rush,” said Graves.
Graves, who pulled no punches when evaluating what’s going on, also said that he thinks the pensions of city retirees should absolutely be protected. He also said that, from what he’s observed so far, it could be that Orr “may be leaning toward protecting bondholders” and their interests.
He also didn’t appear to think too much of those who kept lending Detroit hundreds of millions of dollars, even after it became apparent that the city was being extended far past its limits.
“They really don’t care what’s happening in Detroit as long as they can break its heart and squeeze its last drop of blood,” said Graves.
All we can say is: It’s too bad he’s retired.
News Hits is written by Curt Guyette. Contact the column at 313-202-8004 or NewsHits@metrotimes.com.
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