Traverse City Record-Eagle

September 7, 2013

Detroit EM authorized to file bankruptcy


Traverse City Record-Eagle

---- — DETROIT (AP) — The Michigan Attorney General’s office says in a federal court filing that emergency manager Kevyn Orr was authorized under state law to file a petition to move Detroit into bankruptcy protection.

The state argues Friday in response to objections by creditors that Detroit is eligible for bankruptcy under Michigan’s emergency manager law and because of the city’s dire financial condition.

A federal judge has identified legal objections to the bankruptcy filing, including whether an unelected emergency manager could file on behalf of Detroit.

Friday’s motion states that Orr “determined that no reasonable alternative existed to rectify the financial emergency” in Detroit. Orr has said Detroit’s debt could be $18 billion or more.

The motion also states that Gov. Rick Snyder “remained faithful to all applicable law” when authorizing the petition.