Lawyers wrapping case in Detroit bankruptcy trial - Dallas News | myFOXdfw.com

Lawyers wrapping case in Detroit bankruptcy trial

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  • Schuette endorses Detroit art deal in bankruptcy

    Schuette endorses Detroit art deal in bankruptcy

    Tuesday, June 17 2014 1:47 PM EDT2014-06-17 17:47:06 GMT
    Michigan Attorney General Bill Schuette has given his blessing to a deal that transfers control of art to the Detroit Institute of Arts.
    Michigan Attorney General Bill Schuette has given his blessing to a deal that transfers control of art to the Detroit Institute of Arts.
  • Detroit files plan to fix debt, leave bankruptcy

    Detroit files plan to fix debt, leave bankruptcy

    Friday, February 21 2014 12:49 PM EST2014-02-21 17:49:57 GMT
    Detroit's emergency financial manager filed a plan Friday that would bring the city out of bankruptcy, providing a detailed look at what the Motor City would look like when it finally sheds its financial burdens.
    Detroit's emergency financial manager filed a plan Friday that would bring the city out of bankruptcy, providing for the first time a detailed look at what the Motor City would look like when it finally sheds its financial burdens.
  • Gov. Snyder: 'Detroit's comeback is underway'

    Gov. Snyder: 'Detroit's comeback is underway'

    Friday, February 21 2014 11:35 AM EST2014-02-21 16:35:28 GMT
    Gov. Rick Snyder issued the following statement today on the filing of a plan of adjustment by  Detroit Emergency Manager Kevyn Orr that is part of the city's restructuring.
    Gov. Rick Snyder issued the following statement today on the filing of a plan of adjustment by  Detroit Emergency Manager Kevyn Orr that is part of the city's restructuring under Chapter 9 of the U.S. Bankruptcy Code.

DETROIT (AP) -- Objectors to a Detroit bankruptcy are confusing careful and deliberate planning by state officials with pursuing bankruptcy at all costs, attorneys representing Detroit's state-appointed manager argued Friday.

They "want to punish the governor and treasurer for contingency planning, for doing their jobs," said lawyer Matthew Schneider, the state's chief legal counsel. "This was never about predetermining a Chapter 9 filing. This was only about careful consideration."

Attorneys representing Detroit's state-appointed manager were making their final case on Friday to a federal judge who will determine if the city can fix its finances in bankruptcy. Final arguments are continuing throughout the day from the city, retiree groups, unions and pension funds.

The city in July became the largest municipality in the U.S to file for Chapter 9 protection, but Judge Steven Rhodes gets the final say on whether Detroit is eligible for a restructuring overseen by the court. Critics claim emergency manager Kevyn Orr wanted bankruptcy for months and didn't want to try good-faith negotiations before filing.

But Schneider told Rhodes that the bankruptcy filing was always a "last resort" and contingency planning doesn't "mean you want the storm to come."

Rhodes said he found it "factually impossible" for attorneys representing Orr to conclude that negotiation with creditors was "impracticable" while arguing they negotiated in good faith with them.

Attorney Bruce Bennett said he disagreed, and noted that it's widely understood that reaching an out-of-court settlement is a "great thing" but "extremely difficult." He said a proposal for creditors released in June and subsequent meetings with them laid out in great detail the city's financial problems -- which nobody disputed -- and prescriptions for solving them, but no group came forward with a credible counterproposal.

"Nobody was hiding the ball," he said. "Everyone understood that negotiations were likely to fail."

Sharon Levine, an attorney representing the American Federation of State, County and Municipal Employees, is expected to lead off closing arguments for lawyers representing bankruptcy on Friday afternoon. She previously argued that talks between Detroit and its unions should have lasted months, not weeks, and the city spent months plotting a path to Chapter 9 instead of seeking compromise that could keep it out of bankruptcy.

Orr, a bankruptcy expert who was appointed emergency manager last March by Michigan Gov. Rick Snyder, has said Detroit has at least $18 billion in long-term debt, including $3.5 billion in pension shortfalls.

If Detroit is found eligible to stay in bankruptcy, the case would turn to how to solve the debt. The city has said it could propose a plan by the end of the year. Meanwhile, a team of mediators has been meeting with all sides in the hope of reaching an out-of-court compromise.

  • Local NewsLocal NewsMore>>

  • Federal sting ends in gunfire in Highland Park

    Federal sting ends in gunfire in Highland Park

    Saturday, August 2 2014 12:03 AM EDT2014-08-02 04:03:37 GMT
    In what started as a traffic stop, resulted in a shootout between federal agents and a pair of men known to have illegal assault rifles in Highland Park.Police say a task force of ATF and FBI agents who had previously set up a meet with two men, known to have AK-47s and AR-15s in their Chevrolet Cavalier, began to move in. The traffic stop was made near Oakland and Victor about 7:30 p.m. Friday. The car rammed the federal agents vehicle and the driver opened fire with a handgun. The agents re...
    In what started as a traffic stop, resulted in a shootout between federal agents and a pair of men known to have illegal assault rifles in Highland Park.Police say a task force of ATF and FBI agents who had previously set up a meet with two men, known to have AK-47s and AR-15s in their Chevrolet Cavalier, began to move in. The traffic stop was made near Oakland and Victor about 7:30 p.m. Friday. The car rammed the federal agents vehicle and the driver opened fire with a handgun. The agents re...
  • Officer hit by drunk driver on Detroit's east side

    Officer hit by drunk driver on Detroit's east side

    Friday, August 1 2014 11:15 PM EDT2014-08-02 03:15:06 GMT
    An officer was hit by a driver believed to be drunk Friday at 8 mile and Alcoy on Detroit's east side.Police say officers were investigating at the scene of a traffic accident when the driver ran through the barricade and hit the woman.She was transported to an area hospital with non-life threatening injuries and the drunk driver was arrested. Police had been conducting an investigation of the original accident in which one of the drivers died. Eight mile is closed in east bound lane by Alcoy.
    An officer was hit by a driver believed to be drunk Friday at 8 mile and Alcoy on Detroit's east side.Police say officers were investigating at the scene of a traffic accident when the driver ran through the barricade and hit the woman.She was transported to an area hospital with non-life threatening injuries and the drunk driver was arrested. Police had been conducting an investigation of the original accident in which one of the drivers died. Eight mile is closed in east bound lane by Alcoy.
  • Man arrested after trying to wrestle gun from officer in Detroit

    Man arrested after trying to wrestle gun from officer in Detroit

    Friday, August 1 2014 9:32 PM EDT2014-08-02 01:32:44 GMT
    A man was arrested after he went for an officer's gun trying to wrestle it away from Detroit Police, causing the weapon to fire.SkyFOX was over the scene on Manning Street in Detroit, where the incident occurred Friday,The bullet didn't hit anyone and police took a 27-year-old man from Roseville into custody.Police say the home was a known drug den, and when officers drove by the property -- four people ran from the home.The officer and suspect were treated at a hospital for non life threaten...
    A man was arrested after he went for an officer's gun trying to wrestle it away from Detroit Police, causing the weapon to fire.SkyFOX was over the scene on Manning Street in Detroit, where the incident occurred Friday,The bullet didn't hit anyone and police took a 27-year-old man from Roseville into custody.Police say the home was a known drug den, and when officers drove by the property -- four people ran from the home.The officer and suspect were treated at a hospital for non life threaten...
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