Banker faces cross-exam in Detroit bankruptcy

Detroit bankruptcy trial enters day 3 with more from NY banker, possible testimony by chief

Associated Press
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This Oct. 1, 2013 photo shows the James Scott Fountain on Belle Isle in Detroit. With Detroit facing bankruptcy, all the city's assets are being assessed; the Scott Fountain is valued at $43,560. (AP Photo/Detroit News, David Coates) DETROIT FREE PRESS OUT; HUFFINGTON POST OUT

DETROIT (AP) -- A judge holding a rare trial about Detroit's bankruptcy case could hear testimony from Police Chief James Craig before breaking for the weekend.

The trial is entering a third day Friday with the cross-examination of a key consultant from New York who was working on Detroit's finances even before an emergency manager was appointed in March.

Ken Buckfire says Detroit's finances were on a "razor's edge" weeks before the bankruptcy filing in July. He says unpaid bills were stretched even more by spring.

Craig is expected to testify about the impact on public safety.

A judge must determine whether Detroit is eligible to clean itself up in bankruptcy court. A key issue is whether the city held "good-faith" talks with creditors before the filing. Unions and pension funds say no.

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