Next Score View the next score

    Gov. Snyder on stand in Detroit case

    DETROIT — Governor Rick Snyder testified Monday that lawsuits filed against him, the Detroit emergency manager, and others by city debt holders proved to be the final straw that led him to authorize the city to file for bankruptcy.

    Snyder said the filing was not an attempt to forestall court-imposed injunctions that could result from the lawsuits. But he said he was concerned that the lawsuits from state retirees and others showed there ‘‘wasn’t a meeting of the minds’’ and the city needed to protect itself as it struggled to pay bills.

    ‘‘Bankruptcy is a very last resort,’’ he said. ‘‘It was a tremendously difficult decision to make, but the right one.’’


    Snyder’s testimony came during the fourth day of a federal trial before Judge Steven Rhodes to determine whether the city can fix its finances in bankruptcy court.

    Get Ground Game in your inbox:
    Daily updates and analysis on national politics from James Pindell.
    Thank you for signing up! Sign up for more newsletters here

    His testimony centered on what led to the bankruptcy filing, as well as a decision in March to name bankruptcy expert Kevyn Orr as Detroit’s emergency manager.

    In the days leading up to the bankruptcy filing, retirees sued, claiming their pensions are protected by the state’s constitution and at risk in a bankruptcy. The lawsuits were put on hold.

    Detroit must show that it is broke and that it tried in good faith to negotiate with creditors. Attorneys who oppose the filing, which seeks the largest municipal bankruptcy protection in US history, have tried to build a case that bankruptcy was a predetermined course.

    Dozens of protesters critical of Snyder showed up outside the courthouse.


    Earlier Monday, Orr testified that he had thought as late as June a bankruptcy filing could be avoided but that he knew time was running out for the city and its creditors to agree to concessions.

    Associated Press