Thursday, July 11, 2013

Detroit's creditors won't view their mess

Detroit's emergency manager, Kevyn Orr, invited 25 of the city's creditors on a bus tour to actually see the disaster they created. He's hoping they'll forgive some of the debt.

The bankers canceled. You can guess why -- they didn't want to have their pictures taken.

Michigan Live reports,
Emergency Manager Kevyn Orr's office announced Tuesday afternoon that a bus tour of Detroit planned for 25 bankers who are being asked to forgive the city's debt has been cancelled. 
“Unfortunately, the Office of the Emergency Manager will not be sponsoring a city tour for creditors Wednesday,” Orr spokesman Bill Nowling said in a prepared statement. “The city's creditors informed our office that they would like to spend more time conducting due diligence research into the city's financial state while they are in Detroit. It became apparent Tuesday that postponing the tour was necessary."
Orr has been trying to get city creditors, who are owed billions, to accept massive concessions in order to prevent bankruptcy and steer city funds away from debt service and instead toward public safety and redevelopment.
Chris Savage at eclectablog wasn't impressed:
Although Orr’s office says they are hoping to reschedule the tour, it’s obviously not going to happen. You can just about guarantee that, as soon as the folks back at the corporate office heard about the tour, they pulled the plug immediately. These creditors, mainly bankers who do not live in Detroit, have no interest in the visuals of wealthy mostly-white, mostly-men in front of the desperation that Orr wanted them to see.