Detroit bankruptcy eligibility trial underway

(WXYZ) - Detroit was close to running out of cash, its only dependable revenue was the casino tax and even that was threatened by litigation from Wall Street with loans to the city to cover employee pensions. 

That was testimony in day two of the eligibility trial in Detroit's bankruptcy.  Three experts also testified that many city departments could not perform basic functions when they came into the city last year. 

The experts have looked at monetizing assets including art at the Detroit Institute of Arts.  Appraisals bend done by Christie's are expected to be done soon.

Ken Buckfire of Miller Buckfire investment banker in New York hired as a consultant by Detroit testified several private equity firms looked into buying the water department if they could raise rates. 

Other questions centered on whether city officials held good faith negotiations with creditors and some 20,000 Detroit City retirees facing cuts in pensions and health care. 

The experts testified they participated in talks but they only presented information, they are not officials who could make settlements. 

Detroit Police Chief James Craig and Emergency Manager Kevyn Orr could testify on Friday.  Michigan Governor Rick Snyder is set to testify on Monday at 1 p.m. 

Judge Steven Rhodes said court will run until 5 p.m. on Monday or as long as it takes for the governor to finish. 

The judge also set November 13 for legal briefs in eligibility to be filed meaning we could know by the middle of November whether Detroit can continue in bankruptcy.

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