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EM News Releases

8/28/014 – Kevyn Orr, the Emergency Manager for the City of Detroit (“Detroit” or the “City”), announced today that the City has secured a $275 million Chapter 9 Exit Financing Bond Facility commitment (“Exit Facility”) from Barclays Capital Inc. (“Barclays”). This financing commitment is the culmination of a robust process that included expressions of interest from a number of prospective lenders, underscoring the City’s viability as an attractive investment.
7/29/2014 – Kevyn D. Orr, Emergency Manger for the City of Detroit, today issued a new order that amplifies the responsibilities of the Mayor with respect to management of the Detroit Water and Sewerage Department.
7/28/2014 – The City of Detroit (“the City”) has filed the 2013 Comprehensive Annual Financial Report (“CAFR”) prepared by the City and audited by the independent outside auditing firm KPMG. The report provides an unqualified opinion about the City’s financial position for its fiscal year ended June 30, 2013.
7/21/2014 – Retirees and active employees who are members of the City of Detroit’s two public pension plans as a group have overwhelmingly approved a plan that would provide for $816 million in public and private funds to shore up pensions while placing the collection of the Detroit Institute of Arts in a protective trust. The vote clears the way for the final phase of the City’s historic Chapter 9 bankruptcy case.
7/18/2014 – Detroit Emergency Manager Kevyn D. Orr today said many programs exist to help residents keep the water turned on and the help is just a phone call away.
6/19/2014 – The City of Detroit took steps today to implement its new hybrid pension formulas under the General Retirement System (“GRS”) and Police and Fire Retirement System (“PFRS”) for all active and new employees beginning July 1, a move designed to strengthen the City’s pension funds while maintaining defined benefit retirement programs, Emergency Manager Kevyn D. Orr said today.
6/4/014 – About 3,200 general service pension participants will save an additional $14 million under a stipulation filed today with the U.S. Bankruptcy Court for the Eastern District Michigan. The new formula removes one year from the calculation period used to determined Annuity Fund Savings Recoupment in ballots and matches that period to the one disclosed in the City’s Plan of Adjustment (July 1, 2003 – June 30, 2013).
4/11/2014 – Kevyn Orr, the Emergency Manager for the City of Detroit (“Detroit” or “the City”), said today’s approval by U.S. Bankruptcy Judge Steven Rhodes of a $85 million settlement with two banks related to interest rate ‘swaps’ arrangements made in connection with a 2005 and 2006 pension funding scheme will save Detroit’s residents and taxpayers more than $200 million. These savings will be dedicated to improving basic municipal services in Detroit such as public safety, transportation and sanitation.
3/3/2014 – Kevyn Orr, the Emergency Manager for the City of Detroit (“Detroit” or the “City”), announced today that the City, UBS AG (“UBS”) and Merrill Lynch Capital Services, Inc. (“MLCS”) have entered into a settlement under which they have resolved all claims related to pension ‘swaps’ arrangements among the City, UBS and MLCS. Detroit has filed a motion to approve the settlement (including a term sheet describing the settlement terms) with the United States Bankruptcy Court for the Eastern District of Michigan (“Bankruptcy Court”), which must still approve the settlement. A definitive agreement reflecting the settlement will be filed in the coming days.
2/21/2014 – Kevyn Orr, the Emergency Manager for the City of Detroit (“Detroit” or the “City”), today filed the City’s Plan of Adjustment (“Plan”) and a related Disclosure Statement with the United States Bankruptcy Court for the Eastern District of Michigan (“Bankruptcy Court”). The Plan and Disclosure Statement provide the details of the City’s proposal to (i) adjust up to as much as $18 billion in secured and unsecured debt, (ii) implement a necessary 10-year plan to invest in the City and improve essential services and public safety for its 700,000 residents and (iii) restore its heritage as a productive, vibrant American city.
DETROIT, Feb. 12, 2014 -- City retirees who are not Medicare eligible, either because they are under age 65, or over age 65 but did not pay into the Medicare/Social Security System (including duty-disabled retirees who are not Medicare eligible), must register for healthcare insurance on www.healthcare.gov by Feb. 15.
1/29/2014 – Kevyn Orr, the Emergency Manager for the City of Detroit (“Detroit” or the “City”), today presented to the City’s creditors who are participating in the mediation conducted by US District Court Judge Rosen, on a confidential basis, a Proposed Plan of Adjustment (“Plan”). The Plan outlines the treatment each class of creditors would receive for their claims in Detroit’s restructuring under Chapter 9 of the U.S. Bankruptcy Code.
1/ 22/2014 – Kevyn Orr, the Emergency Manager for the City of Detroit (Detroit or the City) today issued the following statement after Michigan Governor Rick Snyder and state legislative leaders announced plans to support an historic settlement to help shore up the City’s public employee pension funds
1/13/2014 – Emergency Manager Kevyn Orr welcomed today’s announcement that several foundations have pledged $330 million to help fill a $3.5 billion pension funding gap and commended Chief U.S. District Judge Gerald Rosen’s and his team of mediators efforts to find a balanced solution to related bankruptcy claims.
1/6/2014 – Emergency Manager Kevyn D. Orr decided today to delay freezing the City’s two pension funds in an effort to allow more time for federal mediation to reach a solution that helps address Detroit’s insolvency.
11/14/2013 – The City of Detroit has reached an agreement with its EMTs and paramedics on a new 5-year collective bargaining agreement that will restore previous wage cuts and implement proposed pension and healthcare restructuring designed to control costs and maintain services. This is the first complete CBA negotiated between the City and one of its bargaining units since the appointment of an Emergency Manager in March.
08/21/2013 - “The City welcomes the assistance of the mediators appointed in the City's chapter 9 case. Judge Rosen and the highly experienced team he has assembled will greatly assist us in our goal to restructure the City's debt and restore services to Detroit's citizens expeditiously.
8/5/2013 - The City of Detroit today announced it will begin valuing all City-owned assets as part of the ongoing restructuring process. Emergency Manager Kevyn Orr said the valuations are a necessary part of the City's efforts to restructure $11.5 billion of unsecured debt and invest in and improve public safety and other essential services for its 700,000 residents. The valuations do not portend a sale of any asset, Orr added.
8/5/2013 - Emergency Manager Kevyn Orr today issued the follow statement about comments he made in a news article published Saturday in the Wall Street Journal.
08/02/2013 - City of Detroit Proposes New Health Care Plan for Employees with No Premium Increase. Proposal consolidates plans into single, more cost effective plan that maintains comparable level of services. Efficiencies projected to save city $12 million a year, preserve 80/20 match
07/22/2013 - The Office of Emergency Manager Kevyn Orr issued the following statement, through its spokesman Bill Nowling, in response to Robert Davis' latest baseless allegations:
07/11/2013 - Emergency Manager Kevyn Orr has signed Order No. 12 adopting the fiscal year 2014 budget at previously approved by the Detroit City Council.
07/09/2013 – The Office of the Emergency Manager today postponed a tour it had planned for city creditors Wednesday after creditors expressed a desire to spend more time focusing on their due diligence discussions with the city.
07/08/2013 - The Office of Emergency Manager Kevyn Orr has created a Twitter handle and feed to help communicate Detroit restructuring news. The new Twitter handle is: @MotownEM.
07/08/2013 -- Emergency Manager Kevyn Orr today issued Order No. 10, prescribing that vacancies on City Council will remain open until filled by the electorate at the Nov. 5 general election.
06/27/2013 – The City of Detroit’s Emergency Manager Kevyn Orr announced today that his office has sent a notice to DTE Energy Company (NYSE: DTE) indicating that Detroit’s Public Lighting Department (PLD) intends to wind down its electricity distribution and transmission services.
06/27/2013 - Emergency Manager Kevyn Orr today issued an order eliminating the pay and removing authority to conduct city business for Council President Charles Pugh, who has been absent from Council. The order takes affect on July 7, 2013, which is the end of the current pay period. Council Member Pugh will keep his health care benefits
06/26/2013 – Emergency Manager Kevyn Orr today announced that Gary Brown, a former Detroit Police Department deputy chief and current city councilmember, will become the city’s Chief Compliance Officer on July 1.
6/20/2013 - Emergency Manager Kevyn Orr today issued an order directing the city's auditor and inspector generals to conduct a joint investigation of all city employee benefit programs.
05/14/2013 - "Let me first thank and commend Chief Chester Logan for his decades of service to the city. Chief Logan has selflessly returned from his well-deserved retirement to help lead the Detroit Police Department and we should all be grateful for that.
5/14/2013 - "I commend Mayor Bing for his service to the city of Detroit and its citizens. The work that he has begun has set Detroit on a path to achieve many of the goals necessary for the city to thrive.