Detroit EM Kevyn Orr ready to meet with creditors Friday

Detroit emergency manager will meet with city creditors such as union leaders, bond holders at airport hotel

By Rod Meloni - Reporter, CFP ®

DETROIT - Detroit Emergency Manager Kevyn Orr will speak with a long list of creditors Friday -- 150 to 200 people -- inside the Detroit Metro Airport Westin Hotel.

Among them are union leaders such as the many locals in the American Federation of State, County and Municipal Employees, the current and retired police and firefighters unions, and smaller groups such as the crossing guards, forestry and landscape locals.

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The big money bond holders are names many people probably have not heard of such as the U.S. National Bank Association, U.S. Bank Trust National Association, MBIA Insurance Corp. and the Financial Guaranty Insurance Company.

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The rules for the meeting are quite strict. The proceedings start at 10 a.m. Only two persons per group are allowed to attend. Everyone is advised to show up 45 minutes early because they all must show their identification and clear security, which means going through metal detectors.

No cellphones or recording devices of any kind are allowed.

Governor Rick Snyder is not especially concerned about Friday's meeting. He believes Orr has the situation well in hand.

"Kevyn's doing a fine job of managing that process and he should be the point person. He is the appropriate person to be having that dialogue and discussion," Snyder said. "Again, we're monitoring this situation. We're involved in the process, but Kevyn's the point person and he should be leading the discussion with creditors."

But it is truly D-Day for Detroit. Bankruptcy expert Doug Bernstein is not certain the negotiations will prevent bankruptcy.

"You've got a big problem with the compromise being agreed to outside of court by the pensions, and I think for that reason bankruptcy is more likely than not. But I hope I'm wrong," said Bernstein.

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