Financial manager for Detroit mulls talks with unions and creditors

Article by Anita Panait, on May 21, 2013

Kevyn Orr, the appointed emergency financial manager for the near-bankrupt city of Detroit, has submitted his first report to Michigan Governor Rick Snyder, outlining things that may be done to save it from financial collapse. Orr has imposed on himself a six-week deadline to determine whether Detroit can breeze through its financial crisis without having to file for bankruptcy.

Orr’s things-that-maybe-done list includes bond restructurings and negotiated settlements with bondholders and bond insurers, as well as tough discussions with unionized workers. Orr, however, has yet to inform unions, bond insurance firms and others on the full extent that they would be affected by the city’s financial fix. Orr's spokesman Bill Nowling remarked that the emergency manager expects to decide soon whether discussions with affected parties will yield good results.

Nowling said that it is “safe to say” that they have a good idea of whether they can reach an out-of-court restructuring with the city’s bondholders, pensioners, retirees and city employees within six weeks, adding that this will not be a prolonged process. Detroit was once a symbol of industrial might in the United States.

Now, the city serves as a case study of the problems that many US cities and states are living with as they struggle against huge debts and unsustainable obligations. The preliminary steps being taken to save the city from financial collapse is similar to those made between carmakers General Motors and Chrysler and their creditors and workers. Interestingly, Orr represented Chrysler during its restructuring.

If you liked the article, share on:

Comments

Recommended

One of the executives at Volkswagen tagged in the so-called Dieselgate scandal has pleaded not guilty to a list of allegations surrounding the carmaker’s actions to cheat emissions regulations in...
by - February 27, 2017
When the Crown De Luxe saloon was first released in 1972, it was at that time the most lavish Toyota model available to British customers. Both unusual and exclusive, one...
by - February 27, 2017
The ride-sharing fleet of sharing Lyft Inc. will soon include thousands of specially fitted self-driving Chevrolet Bolt electric vehicles, courtesy of General Motors. If plans push through, Lyft’s clients would...
by - February 27, 2017
J.D. Power has officially released the 2017 Vehicle Dependability Study, an annual list of the most dependable brands in the auto industry. Once again coming on top is Lexus, the...
by - February 26, 2017
Citroen revealed that its entry to the Chinese market is moving forward with the planned release of the new generation C5. While still on sale on this part of the...
by - February 26, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries