(WXYZ) - Michigan Governor Rick Snyder approved taking Detroit into bankruptcy and spent three hours in a deposition taken by opponents and creditors in the case.
Attorneys for AFSCME and UAW represent active and retired Detroit City workers who face cuts in their pensions and health care with Detroit in bankruptcy.
Attorney Michael Artz from AFSCME says when asked how pensions should be treated, the Governor replied he had no opinion. The same answer was given by the Governor when asked how pensions should be treated compared to Wall Street bond holders, according to Artz.
Attorney Sharon Levine says the Governor was forthcoming in some answers, in others he said he did not recall and in other answers he invoked attorney-client privilege. The Governor was also asked if there were good faith negotiations with creditors before going into bankruptcy in July, which could be a key to challenging eligibility in Bankruptcy Court when it comes up in just two weeks.
A spokesperson for the Governor says a video of the 3-hour deposition will be released.
In a statement the Governor said, “I agreed to participate in today’s proceedings and answer questions regarding the decisions that led to the municipal Chapter 9 filing for the city of Detroit. Doing so helps ensure this case is resolved fairly and as quickly as possible and that we’re acting in the best interests of Detroiters and Michiganders.
“Detroit is in the midst of a fiscal crisis six decades in the making. Authorization of the Chapter 9 filing was a difficult but necessary decision – one that clearly was the last and only viable option to resolve the city’s fiscal crisis and restore the greatness of this proud city. I am convinced that it will spur the turnaround and complete the comeback of our state’s largest city, and ensure a vibrant, thriving Detroit and Michigan for generations to come.”
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