— Kate Smith (@laKateKate) August 8, 2013
I’ve closely watched five municipal bankruptcies, Jefferson County, Alabama, Central Falls, Rhode Island, Vallejo, Stockton and San Bernardino in California and two near bankruptcies in Mammoth Lakes, California and Harrisburg, Pennsylvania. Never have I seen the person managing a bankruptcy process seek media attention like Detroit’s Emergency Manager Kevyn Orr.
You can watch video interviews of Orr done with Detroit television stations and newspapers, national broadcast networks and national financial media like Reuters, the Wall Street Journal and the Financial Times. This media rush began before Orr dropped his Proposal to Creditors on June 14th. I was astonished at the time that Orr had pre-packaged and distributed how he wanted creditors treated. This step usually happens much later in a bankruptcy process. Although Orr claimed that he wanted to use his proposal as a template for negotiations with creditors he held no meetings with retirees, unions or bondholders other than marching these groups into city auditoriums and presenting Powerpoint presentations. Everyone of these groups say that Orr did not hold “good faith” negotiations; a requirement to be accepted into Chapter 9 bankruptcy.
Orr really amped up media attention with his invitation for bondholders to take a bus tour of Detroit: