Mich. Gov. Says Lawsuits Led to Bankruptcy Filing 10/28/13
DETROIT - Michigan Gov. Rick Snyder says lawsuits filed against him, the state-appointed Detroit emergency manager and others proved the final straw that led him to authorize the city to file for bankruptcy.
Snyder's testimony is rare for a sitting governor. It came Monday in the fourth day of a hearing to determine whether Detroit can fix its finances in bankruptcy court. His testimony centered on a decision to name Kevyn Orr Detroit's emergency manager.
Orr filed for bankruptcy in July, making Detroit the largest municipality to do so.
Detroit must show it is broke and tried in good faith to negotiate with creditors. Unions and pension funds claim Detroit didn't hold genuine talks and the case should be thrown out.
Orr says Detroit has $18 billion in long-term debt.