DETROIT (AP) — Detroit's emergency manager faced tough cross-examination Tuesday from lawyers for unions and retirees as he defended his decision to take the city into bankruptcy without first striking a deal to prevent pension cuts.
It was Kevyn Orr's third day on the witness stand during a trial to determine if Detroit's bankruptcy case can go forward. The city must show it was broke and tried to negotiate with creditors in good faith before filing for Chapter 9 protection in July.
The opposition is led by Detroit's unions and pension funds, which have much to lose if the city is declared eligible to rework $18 billion in long-term debt. Orr has said the pension pools are underfunded by $3.5 billion, but he hasn't proposed what to do about it.
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