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Criminal Justice & Legal System

Former state Treasurer Andy Dillon finishes Detroit bankruptcy testimony

Dillon.jpg
Associated Press
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Former state Treasurer Andy Dillon.

Former state Treasurer Andy Dillon finished his testimonial in Detroit’s bankruptcy trial, bringing his three-day testimonial to a close.

On Tuesday, Dillon defended his recommendation for Detroit’s bankruptcy filing, saying it was a “last-resort option.” But some of Detroit's creditors are arguing that the decision to file for Chapter 9 bankruptcy was not exactly a last resort, but instead a quick decision that overlooked an opportunity to continue negotiations.

From the Detroit Free Press' Nathan Bomey and Alissa Priddle:

 

But in a July 10 e-mail that was shown in court, Dillon expressed concern that the filing “looks premeditated” and argued that the state needed to do a better job of explaining why it was necessary. “I don't think we are making the case why we are giving up so soon to reach an out-of-court settlement,” Dillon wrote. Creditors who have objected to Detroit’s bankruptcy portrayed Dillon’s assessment as evidence that the city rushed into court. If they can prove the city negotiated in bad faith, Judge Steven Rhodes could dismiss the city’s bankruptcy filing, forcing Orr back to the bargaining table.

Union and pension representatives are arguing in court, saying that Orr didn’t engage in enough “good faith negotiations” prior to the bankruptcy filing on July 18.

 

Last month, Dillon stepped down as the state's treasurer, citing a messy divorce for his departure. "My family deserves privacy and our residents deserve to know their State Treasurer is not distracted by such issues and events," Dillon said in a statement. Dillon ended his term on Nov. 1. 

 

- Melanie Kruvelis, Michigan Radio Newsroom

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