Snyder, Dillon Subpoenaed In Detroit’s Bankruptcy
DETROIT (WWJ/AP) - Gov. Rick Snyder and Treasurer Andy Dillon have been subpoenaed to give depositions about decisions they made that may be tied to Detroit’s bankruptcy filing.
Documents filed Wednesday in Detroit federal court show Snyder’s transformation manager Richard Baird also was served a subpoena Friday.
Snyder is ordered to appear Sept. 17 at the American Federation of State, County and Municipal Employees Council 25 office in Detroit. Dillon and Baird must appear Sept. 18.
The union claims state-appointed emergency manager Kevyn Orr has negotiated in bad faith while trying to restructure $18 billion or more in debt.
A hearing is scheduled Tuesday on the state’s motion to keep the officials from testifying.
Orr, hired in March by the state to fix Detroit’s finances, has said there are no other options for Detroit. The city’s budget deficit has hovered near or above $300 million during the past few years.
He filed for bankruptcy on July 18, claiming the city has at least $18 billion in liabilities, from underfunded pensions and health care costs to bonds that lack city revenue to be paid off.
Orr also stopped payment on $2.5 billion in debt in June.
The city has until Sept. 6 to file its responses to any objections by creditors. A multi-day hearing on the eligibility question is scheduled to start Oct. 23.
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