O: "I don’t know."
Later Levine asked him about his knowledge of his former firm [Jones Day] had a relationship with the governor or the state of Michigan or the City.
O: "I don’t know."
Sharon Levine stepped down. Jennifer Green representing the pension systems is now cross examining Kevyn Orr.
2:30 PM --
Jennifer Green continues her cross: She inquires about whether the State would step in and offer assistance with pension benefit shortfalls. She showed an email from Jones Day [Orr’s prior employer] that said “state will probably step up to deal with, but thus far has failed to concede this point at all.”
Green wanted to know whether Orr knew about the email or Jones Day’s relationship with the city. He said he did not know. Green’s questioning continued pressing him on the notion whether he understood pension benefits are sacrosanct and whether somehow his position on what should happen with pension benefits had changed. At one point Orr said the following: “I said previously in my experience there is Federal supremacy and I’ll stand by those statements."
At that point Green showed a video of Kevyn Orr answering a question at the June 14 creditors presentation. He was asked if his answer that day was correct. Orr answered, “I don’t know.”
Then Green showed a video of a meeting Orr had with retirees at Wayne State University a few days before the June 14 creditor’s proposal prior to the bankruptcy filing . He took a question from a Detroit retiree inquiring about what he would do with pensioners and their benefits and crime. Orr explained to the man in the meeting pensions were sacrosanct meaning they cannot be touched.
Green: “You told them no cuts and four days later there were cuts ... ?”
O: "It is what is ... whatever is in the plan."
Green asks again.
Green: “When did you realize pension benefits were going to have to be cut?"
O: "I wasn’t sure Chapter 9 was necessary. On the 10th and the 14th June we were negotiating."
Green then wanted to know about when he was being consulted on Chapter 9 with his advisors.
O: "Chapter 9 had been discussed since 2005 Miss Green."
You had been in contact with your financial advisors throughout. Chuck Moore was one on the financial advisory task force.
Green: "Do you recognize this email dated June 2, 2013?
G: "There is an email from Chuck Moore to you discussing a lengthy call with Milliman and you received this email right/"
O: "Yes I believe so."
G: "It talks about, 'we anticipate a significant reduction in already accrued benefits will be required in order to get required contributions to the level of available cash to service the UAAL. It appears this may be only possible in a Chapter 9 proceeding.'
So did you knowingly give improper testimony on the 10th? [to the retirees?]"
Special section: Detroit bankruptcy