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Gov. Snyder Testifies in Detroit Bankruptcy Trial

Gov. Snyder Testifies in Detroit Bankruptcy Trial

Governor Rick Snyder says he did know Detroit retirees weren’t being protected by any federal programs when he authorized the city’s bankruptcy filing.

Snyder testified in U.S. Bankruptcy Court Monday that he hasn’t discussed with Kevyn Orr, the emergency manager he appointed for Detroit, the impact a bankruptcy would have on retirees.

The trial that will determine if Detroit is eligible for Chapter 9 protection. Asked if pension cuts are necessary under Chapter 9, Snyder said he doesn’t “necessarily know there have to be.”

Earlier in questioning, the Governor, who holds a law degree from University of Michigan, said he is aware about a pension clause in Michigan’s constitution.

Earlier Monday, Orr testified that a month before the city filed for bankruptcy, he thought it could be avoided but only with concessions from creditors that never came.

The trial could end later this week, but a decision on Detroit’s bankruptcy eligibility appears to be several more weeks away. The judge has set a November 13 deadline for lawyers to file legal briefs on certain issues.

 

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