Huffpost Detroit

Kevyn Orr Emails Show He Considered Detroit Bankruptcy In January, Activist Robert Davis Says

Posted: Updated:
KEVYN ORR
Kevyn Orr, emergency manager for the city of Detroit, listens during a news conference in Detroit, Michigan, U.S., on Friday, July 19, 2013. Detroit, the cradle of the automobile assembly line and a symbol of industrial might, filed the biggest U.S. municipal bankruptcy after decades of decline left it too poor to pay billions of dollars owed bondholders, retired cops and current city workers. Photographer: Jeff Kowalsky/Bloomberg via Getty Images | Getty

Kevyn Orr may not have been announced as the choice to become Detroit's emergency manager until March, but he was discussing potential bankruptcy plans with Gov. Rick Snyder as early as January.

Activist Robert Davis obtained emails between the emergency manager, his coworkers at the Jones Day law firm and Snyder in an attempt to have Orr removed from office. He told the Detroit News that the emails suggest Snyder violated the Open Meetings Act when hiring an emergency manager, a law stipulating that most government meetings should be announced and open to the public.

According to the Detroit Free Press, Jones Day lawyer Dan Moss told Orr in January bankruptcy was a good option for Detroit.

“It seems that the ideal scenario would be that Snyder and (Mayor Dave) Bing both agree that the best option is simply to go through an orderly Chapter 9," Moss wrote. "This avoids an unnecessary political fight over the scope/authority of any appointed emergency manager and, moreover, moves the ball forward on setting Detroit on the right track."

Davis told the Detroit News that Orr and Snyder's references to bankruptcy in January call into question whether Orr negotiated with creditors in good faith before filing for Chapter 9 protection.

"It clearly indicates from day one ... the decision (to seek bankruptcy) was already made," he told the Detroit News.

Orr Spokesman Bill Nowling blasted Davis in a statement sent to The Huffington Post.

"The emails mentioned by Mr. Davis show nothing more than the proper due diligence between the city, a potential vendor and a candidate for emergency manager," the statement reads. "The notion that a Chapter 9 filing was a forgone conclusion is absurd. Kevyn Orr held more than 100 meetings with creditors, stakeholders and unions in the last three months before deciding that the best course for restructuring the city was to seek federal bankruptcy protection."

Davis is no stranger to controversy himself. The AFSCME union activist has been federally indicted for allegedly stealing $125,000 from the troubled Highland Park Schools and filing four years of false tax returns.

The allegations by Robert Davis join cries of protest from union members and litigation from Circuit Court that called the bankruptcy filing "unconstitutional."

Last Friday, Ingham County Circuit Court Judge Rosemary Aquilina issued a temporary injunction, arguing that Snyder rushed into bankruptcy court while preparing to cut pensions, which are protected in the Michigan Constitution. Some pensioners are also ready to argue in court that the speed of Detroit's filing shows that the city didn't negotiate in good faith, reported Bloomberg News. That's one of the requirements of Chapter 9 bankruptcy.

Speaking at an AFSCME council meeting Monday, state Rep. Tim Greimel (D-Auburn Hills) also accused Orr and Snyder of not negotiating in good faith, reports Crain's Detroit Business.

"Most troubling of all, I think they decided from the get-go that they wanted bankruptcy to be the outcome,” Greimel said. “They decided that they were going to go this route.”

Protesters plan to demonstrate against the bankruptcy outside the Coleman A. Young Municipal Center, Detroit's City Hall, on Friday at 12:30 p.m.

Also on HuffPost:

Close
Whistleblowers Everyone Ignored
of
Share
Tweet
Advertisement
Share this
close
Current Slide

Suggest a correction

Around the Web

Kevyn Orr - Wikipedia, the free encyclopedia

Kevyn Orr, the Man Trying to Save Detroit - RealClearPolitics

Detroit bankruptcy, Kevyn Orr's doubts ... - Detroit Free Press

Detroit Cant Wait - Biography of Kevyn D. Orr - State of Michigan

Kevyn Orr Defends Detroit Bankruptcy: 'We Dug This Hole' | Fox ...

Kevyn Orr « CBS Detroit

Jones Day partner Kevyn Orr named as Emergency Financial

Activist claims emails he obtained regarding Emergency Manager ...

Detroit Gets Kevyn Orr as Emergency Manager - NYTimes.com

Detroit bankruptcy, Kevyn Orr's doubts discussed weeks before EM was hired, e ...

'MiWeek': Kevyn Orr, Gov. Rick Snyder talk Detroit bankruptcy

Detroit Emergency Manager Kevyn Orr: "We Dug The Hole"

Kevyn Orr says time, not lawsuits, led to Detroit bankruptcy filing

Detroit Mayor Dave Bing & Emergency Manager Kevyn Orr address Detroit ...

Blog replay: Kevyn Orr, Dave Bing discuss Detroit's bankruptcy filing