Bankruptcy expert named Detroit emergency manager
Thu, 14 Mar 2013 18:20:03 GMT —
A bankruptcy expert who represented automaker Chrysler LLC during its successful restructuring has been named Detroit's emergency manager.
Michigan Gov. Rick Snyder on Thursday announced Kevyn Orr as the person who will take control of Detroit's beleaguered finances. The Motor City's debts include a $327 million budget deficit and $14 billion in long-term debt.
Orr's appointment makes Detroit the largest U.S. city to have its finances placed under state control.
Orr is a partner in the Jones Day firm, a Cleveland-based law and restructuring company that also will serve as Detroit's restructuring counsel.
Detroit has lost a quarter-million people during the previous decade. It's been paying month-to-month bills with bond money held in a state escrow account. City workers also have been forced to take mandatory unpaid days off.