(Reuters) – Now that Detroit’s emergency manager has laid out a tough road that could include a bankruptcy filing for the city, the bondholders, pension managers and others with a stake in the outcome are left to assess his next steps while seeking to minimize any possible losses.
Kevyn Orr faces a difficult task, for he must either coerce the financially troubled city’s creditors into cutting a deal that would leave many with just pennies on the dollar, or file for Chapter 9 bankruptcy, where his powers would be greater but the likelihood of long, costly litigation far higher.
DETROIT, May 27 (Reuters) – When Kevin Ward fulfilled his
dream by opening a rib joint in one of Detroit’s poorest and
most blighted areas, he could not afford extra meat. If the ribs
ran out, he closed for the day.
“We were doing real well considering, but inventory was a
problem,” said Ward, 40, who perfected his ribs while at college
in Alabama and opened Slabbee’s five months ago in Brightmoor.
By Nick Carey
(Reuters) – For Kevin Kookogey, the Internal Revenue Service’s scrutiny of his one-man outfit providing conservative mentoring for students was so onerous he thought it was trying to deter him from political activity.
“It worked,” said the Tennessean who ran the group Linchpins of Liberty. “I completely shut down and do my mentoring without fundraising so I can avoid getting audited.”
(Reuters) – Michigan’s biggest city is “clearly insolvent” and needs to restructure its debt and renegotiate its labor contracts to address its problems, Detroit’s emergency financial manager said on Monday.
Emergency Financial Manager Kevyn Orr in a report issued online presented a sweeping review of Detroit’s problems, from gaping budget deficits to a crushing debt load to abandoned homes and broken streetlights.
DETROIT, May 12 (Reuters) – Six weeks into his work as
Detroit’s emergency manager, former bankruptcy lawyer Kevyn Orr
has found the city’s finances in worse shape than expected, with
long-term debt at $15 billion, $2 billion worse than figures
disclosed before he took the job.
The city has set aside far less than expected for retiree
healthcare benefits, too. A report from Michigan State
University in March stated that Detroit has $4.9 billion of
unfunded benefit liabilities. But Orr’s review has found the
shortfall actually is $5.7 billion, 16 percent higher than
expected, according to Orr’s spokesman, Bill Nowling.
WEST, Texas/CHICAGO (Reuters) – When Cody Dragoo set out with his fellow volunteer firefighters to stop the fire raging at the West Fertilizer Co, he more than anyone knew the dangers that loomed, family and friends said.
A team leader for the all-volunteer firefighting force in West, the 50-year-old worked at the plant mixing combustible chemicals to make fertilizer for use on the fields of corn and other crops that surround the rural Texas town.
March 26 (Reuters) – Wisconsin’s Republican governor, Scott
Walker, is working on a book on the lessons he learned in his
2011 battle with the Midwest state’s labor unions and how
conservatives could apply them at a national level.
Observers said the book could be a signal that Walker, who
last year became the first U.S. governor to survive a recall
election, is contemplating a presidential bid.
March 14 (Reuters) – Rick Snyder’s decision to put Detroit
in the hands of an emergency financial manager on Thursday may
not go down well in the heavily Democratic Motor City, but the
Republican governor has the chance to go down in Michigan
history as the man who saved Detroit.
The biggest state takeover of an American city in over two
decades comes the year before many expect the
businessman-turned-governor to seek re-election in 2014. In any
political calculating, Snyder probably didn’t count on
Detroiters getting him to a second term.
DETROIT, March 5 (Reuters) – United Auto Workers President
Bob King says he has finally begun to stem the decades-long
membership decline in one of America’s most powerful labor
unions, but his goal of organizing at least one foreign-owned
automaker in the South continues to elude him.
King, 66, who is slated to step down in June 2014, said two
years ago that the UAW did not have a future if it could not
organize workers at plants in Mississippi, Alabama, Georgia and
Tennessee that are owned by Japanese, German and South Korean
LANSING, Michigan (Reuters) – In today’s partisan environment, many U.S. politicians tend to hew close to their base and not worry about angering their opponents, but Michigan Governor Rick Snyder possesses a rare talent for raising hackles on both sides.
In early December, the Republican governor angered the state’s powerful labor unions by signing so-called “right-to-work” legislation allowing workers to opt out of union membership. Then earlier this month, Snyder annoyed Michigan’s small-government conservatives with a plan to expand Medicaid and raise the gas tax for road repairs.