You are using an outdated browser. Please upgrade now to a modern browser in order to benefit of all our site's features: Chrome, FireFox, Opera, Safari or Internet Explorer. [Close]

The Official Blog of Fox News Channel

'We Dug This Hole': Man Appointed to Save Detroit Defends Bankruptcy

This week, Detroit became the largest city to file for bankruptcy, facing an estimated debt of $19 billion dollars. Detroit Emergency Manager Kevyn Orr must now figure out how to run the city. He spoke to Chris Wallace on Fox News Sunday about what's next for the city.


Is DOJ's Defunding of At-Risk Youth Program Unconstitutional?


A county judge ruled that the bankruptcy filing was unconstitutional under Michigan law because it violates the rights of city pensioners. Article 9, Section 24 reads: “Financial benefits of each pension plan and retirement system of the state and its political subdivisions […] shall not be diminished.”

Orr said the state is appealing the court order because filing for bankruptcy is “the only way” to resolve the grievous problems. Under his plan, pensioners would be paid for the next six months. After that, he acknowledged, “there are going to have to be concessions.”

When asked whether the federal or state government should step in to help, Orr responded, “we dug this hole.”

He said Detroit is responsible for fixing the problem that they created through unfunded obligations, deferrals, borrowing and even corruption.

Despite critics of the filing who argue that Detroit will have a hard time borrowing money in the future, Orr said, “The reality is [investors are] going to look at the credit rating of a rehabilitated city.”

As to how long it will take for Detroit to be back in business, Orr hopes it will be around the fall of 2014. 


PHOTOS: Images Recall Detroit's Golden Age as 'The Motor City'


Obama Admin Doing This to Make Sure Benghazi Truth Never Comes Out


 

 

Posted in: 
Leave a Comment0

Don't want to keep checking back here for the latest from Fox News? That's cool. We'll come to you ...

Connect with Fox News

Subscribe

Stay connected with the most-trusted name in cable news through exclusive videos, blogs, polls, contests and behind-the-scene details.

Get More Fox!

Greta Is Wired!

GretaWire.com is the official blog of Greta Van Susteren. Get Greta’s breaking news alerts, pictures, videos, polls, and behind-the-scenes exclusives. Plus, speak out on open threads, as well as the live chat page. Connect to the GretaWire community ... and to Greta herself!

Fox News Presents: 'My America with Elisabeth Hasselbeck'

Fox News Channel presents an exciting new feature series, My America with Elisabeth Hasselbeck. From the quirky to the inspirational, "My America" reveals who we are as a nation – driven, passionate and uniquely American. Watch the latest installment, an up-close look at the beloved Oscar Mayer Wienermobile!