Detroit’s bankruptcy proceedings are moving at a swift pace and the emergency financial manager’s office insists that the city could emerge from that status by the summer or fall.
“There will be a series of hearings and arguments in the court, but things are moving at a pretty fast pace,” said Bill Nowling, a spokesman for Detroit’s emergency financial manager Kevyn Orr, in an interview with BET.com.
“Our feeling is that, the sooner we can get all the debt adjusted and have things resolved, the better,” Nowling said.
Earlier this week, federal Bankruptcy Judge Steven Rhodes proposed a quick-paced timeline that could resolve Detroit’s bankruptcy case as soon as this summer.
However, creditors want more time to challenge the reorganization plan that could give some only cents on the dollar of what they are owed. Detroit, concerned about spending millions on lawyers and other professionals, wants to move quickly out of court and on to investing in the city again.
Orr, who was appointed last year amid great controversy, is planning to leave once his contract ends in September, Nowling said. At that point, it will be up to Michigan Gov. Rick Snyder to determine whether Detroit should remain in emergency financial status.
“At that point, the governor could either appoint a new financial manager or he could lift the financial emergency,” Nowling said.
Mike Duggan, Detroit’s new mayor, has long contended that there was no need for an emergency financial manager and that the leadership of Michigan’s largest city could take care of the all managerial and fiscal issues.
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(Photo: Bill Pugliano/Getty Images)