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Banker Faces Cross-Exam in Detroit Bankruptcy

Banker Faces Cross-Exam in Detroit Bankruptcy

A judge holding a rare trial about Detroit's bankruptcy case could hear testimony from Police Chief James Craig before breaking for the weekend.

The trial is entering a third day Friday with cross-examination of a key consultant from New York who was working on Detroit's finances even before an emergency manager was appointed in March.

Ken Buckfire says Detroit's finances were on a "razor's edge" weeks before the bankruptcy filing in July. He says unpaid bills were stretched even more by spring.

Craig is expected to testify about the impact on public safety.

A judge must determine whether Detroit is eligible to clean itself up in bankruptcy court. A key issue is whether the city held "good-faith" talks with creditors before the filing. Unions and pension funds say no.

 

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