DETROIT, Oct 28 (Reuters) – Michigan Governor Rick Snyder
defended Detroit’s bankruptcy filing on Monday, stating in court
that he followed the state and federal constitutions while
addressing fiscal issues that had built up in Detroit for more
than half a century.
Snyder said the Michigan and U.S. constitutions do not
prevent actions that he took, even though the Michigan
constitution prohibits diminishing pension payments to retired
employees. Detroit’s emergency manager, Kevyn Orr, has indicated
that cuts to pension benefits would be part of a Detroit
bankruptcy restructuring plan.
DETROIT, Oct 28 (Reuters) – Detroit’s financial status was
“shocking” when he first took office, the city’s emergency
manager said in federal court testimony Monday, and no
knowledgeable person ever has disputed his claim that the city
is insolvent, he added.
Detroit Emergency Manager Kevyn Orr painted a grim picture
of life in Detroit, from a fire department with faulty equipment
to blighted neighborhoods where school children say they are
afraid of “everything” as they walk to school or their bus
stops, at the start of what could be a pivotal day in the city’s
bankruptcy eligibility trial.
DETROIT, Oct 25 (Reuters) – Detroit Emergency Manager Kevyn
Orr did not speak about filing for Chapter 9 municipal
bankruptcy in his first meetings with Michigan state officials
before he was named to his post, according to testimony he
delivered on the third day of the city’s bankruptcy eligibility
Orr’s testimony came in the last 50 minutes of Friday’s
session, which offered only a brief glimpse of what may be the
most critical testimony as Detroit seeks to establish a case
that it is bankrupt and has a right to work out its stark
financial problems under protection of a bankruptcy court.
DETROIT (Reuters) – Cuts to Detroit’s public pensions and retiree healthcare were inevitable given the city’s sagging finances, a top consultant for the city testified on Friday during the third day of a trial to determine whether the city is eligible for bankruptcy.
Money owed to Detroit workers and retirees is a key factor in the case, which will also hear testimony by Kevyn Orr, Detroit’s state-appointed emergency manager. Orr is expected to explain efforts to negotiate with the city’s numerous creditors, including retirees and pension funds, before deciding to file for the largest-ever Chapter 9 municipal bankruptcy on July 18.
DETROIT (Reuters) – AutoNation Inc (AN.N: Quote, Profile, Research, Stock Buzz) the largest U.S. auto dealer, on Thursday posted a 13 percent increase in quarterly profit amid rising demand for both new and used vehicles.
Third-quarter net income of 75 cents per share on profit of $92.6 million missed analyst expectations of 77 cents per share, according to Thomson Reuters I/B/E/S. A year ago, its net income was $81.6 million, or 66 cents a share.
DETROIT, Oct 24 (Reuters) – AutoNation Inc the
largest U.S. auto dealer, on Thursday posted a 13 percent
increase in quarterly profit amid rising demand for both new and
Third-quarter net income of 75 cents per share on profit of
$92.6 million missed analyst expectations of 77 cents per share,
according to Thomson Reuters I/B/E/S. A year ago, its net income
was $81.6 million, or 66 cents a share.
DETROIT (Reuters) – A trial on Detroit’s eligibility for bankruptcy protection kicked off on Wednesday with opponents claiming the city tried to bypass restrictions on cutting workers’ pensions, as experts in municipal bankruptcy around the country watched closely in a case that could set important precedents.
At issue is whether Detroit, which in July filed the largest municipal bankruptcy in U.S. history, negotiated in good faith before it sought protection from its creditors.
DETROIT, Oct 23 (Reuters) – Is Detroit bankrupt? A federal
judge began hearing arguments Wednesday morning in Detroit on
the largest municipal bankruptcy filing in U.S. history that
will ultimately will answer that question.
For a city saddled with massive debts and fighting to
deliver services to its residents, the answer may sound simple.
But the decision by U.S. Bankruptcy Judge Steven Rhodes on
whether Detroit is eligible to restructure its debts and
liabilities under Chapter 9 of the U.S. Bankruptcy Code that
covers municipalities will rest on a slew of complicated issues
to be addressed over a multi-day hearing.
DETROIT (Reuters) – Volkswagen AG’s (VOWG_p.DE: Quote, Profile, Research, Stock Buzz) top executives are divided over whether and how workers at the company’s Tennessee assembly plant should be represented by a union, but ultimately will insist on a formal vote by those employees, a person with knowledge of the board’s thinking said.
While VW’s U.S. executives are hostile to the United Auto Workers, the eight-member management board may still ask the union to help set up a German-style employee board at the Chattanooga plant, said the person, who asked not to be identified.
DETROIT/SEOUL Oct 4 (Reuters) – Popular electric carmaker
Tesla Motors Inc may name South Korean battery
producer Samsung SDI Co Ltd as an additional
supplier as the California auto upstart tries to add more models
and expand, although at least one source familiar with the
discussions described the deal as being far from done.
Both Tesla and Samsung SDI, a unit of Samsung Electronics Co
Ltd, on Friday confirmed that the two companies are
in talks about the South Korean company supplying battery
technology to Tesla, the maker of the best-selling U.S. electric
car, the premium Model S sedan with a price tag of $70,000.