Shoemaker: "Were you available at this time?"

Orr: "Yes."

Shoemaker: "Did creditors send counter proposals?"

Orr: "Yes. A group of creditors led by Ambac [the municipal bond insurer] and another group of creditors I think."

Shoemaker: "Did you receive any union proposals between June 14th to July 15th."

Orr: "No."

Shoemaker: "Pension funds, retirees?"

Orr: "No."

Shoemaker: "Any other stakeholders?"

Orr: "No."

11 AM --

Shoemaker: In Late June or early July your team went into Chapter 9 preparations, why?

Orr: "It was a contingency. You pray for peace and prepare for war. Not to do so would not be responsible."

More: Detroit EM Kevyn Orr says bankruptcy filing unavoidable

Shoemaker: Did Chapter 9 preparations hurt your ability to negotiate in good faith?"

Orr: "No. We were ready to hear any counter proposal that came over the transom"

Shoemaker: "There were a number of lawsuits filed. Did the show you were not showing any interest in negotiating a settlement."

Orr: "We continued to say we would negotiate even in this litigious area. We continued to try and move the negotiations forward as the situation was growing precarious and out of control."

Shoemaker then moved on to Orr’s recommendation to the governor, showing his letter to the governor and asked him why he sent it:

Orr: "I believe at that time a rising level of conflict, we were running out of time."

Shoemaker: Did any of the unions make counter proposals to your restructuring plan?

Orr: "Ambac and another creditor gave written proposals but other than that no."

Shoemaker: "Why send this letter?"

Orr: "I wanted to get the authority in hand, considering the condition of the city, the deficits, growing liabilities, the growing financial emergency ... I felt it was time to make a decision."

Shoemaker: Why did you send the letter?