Detroit EM Cancels Creditors’ Bus Tour
DETROIT (WWJ/AP) – Detroit emergency manager Kevyn Orr has cancelled a planned bus tour of the city’s hardest-hit areas with about 25 creditors.
Orr’s office said officials will seek to reschedule the tour originally set for Wednesday but a new date hasn’t been determined.
The Detroit News reported Tuesday that several creditors opted out because of media attention. Orr spokesman Bill Nowling said “they don’t want their pictures taken,” according to the newspaper.
He said a few of the creditors still wanted to take the tour, but, “We don’t need to through the expense if we’re just gonna take one or two people on a tour. They can go on a tour on their own.”
Nowling added, in a statement, “The city’s creditors informed our office that they would like to spend more time conducting due diligence research into the city’s financial state while they are in Detroit. It became apparent Tuesday that postponing the tour was necessary.
“Mr. Orr still encourages the city’s creditors to visit and tour the city on their own to see first-hand the issues ordinary Detroiters must deal with each day. If creditors do take the time to see all of Detroit they will better understand why the Emergency Manager proposed a restructuring plan that focuses on creating a strong, viable and solvent Detroit that is able to provide the most basic of services. Restructuring is not just about balance sheets, it’s also about the 700,000 Detroiters who need the city to thrive again.”
Orr is a bankruptcy expert hired in March by the state to fix Detroit’s finances, which are running a $380 million deficit this year. He says long-term debt could top $17 billion and is asking bond-holders to accept steep markdowns on what they’re owed.
Following a closed-door meeting with creditors last month, Orr said Detroit is “tapped out.” He said there’s still a 50-50 chance the city will file for a municipal bankruptcy.
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