Report: Mayor of Detroit "alarmed" over bankruptcy fees charged to the city
Matt Helms at the Detroit Free Press reports that Mayor Mike Duggan has some sticker shock over the cost of Detroit’s bankruptcy.
Helms reports that Duggan “is alarmed” that the city will have to pay lawyers and consultants close to $200 million. Duggan worries the payout could put the city at risk of not meeting the terms of the city’s plan of adjustment – a plan the federal bankruptcy judge approved last week.
More from Helms and the Detroit Free Press:
Three people familiar with Duggan's views on the fees told the Free Press that the mayor believes the total fees could climb close to $200 million, an amount he worries could jeopardize the city's ability to meet the bankruptcy's financial terms. That compares to the roughly $100 million that many bankruptcy experts predicted would be the cost when Detroit filed for the nation's largest-ever municipal bankruptcy in July 2013.
A spokesperson for former emergency manager Kevyn Orr disputes that the bill could reach $200 million, saying the fees charged to the city reached $144.3 million as of October 31.