DETROIT — Detroit's emergency manager says he took the city into bankruptcy in July after making no progress with creditors.
Referring to lawsuits by Detroit retirees and legal challenges to much-needed revenue from casinos, Kevyn Orr said Tuesday that "things were starting to spiral out of control."
Orr is back in the witness chair at a trial to determine whether Detroit's bankruptcy case can move ahead. He says the city has $18 billion in debt and needs Chapter 9 to reorganize.
Unions and pensions funds say Detroit didn't negotiate in good faith before the filing. They want the case thrown out.
Michigan Gov. Rick Snyder testified Monday that bankruptcy was a "last resort" but the right decision. He appointed Orr and approved the bankruptcy.