Kevyn Orr is the leading choice to become Detroit’s emergency financial manager

Article by Christian A., on March 13, 2013

Michigan Governor Rick Snyder is expected to appoint as Kevyn Orr as the financial emergency manager for Detroit as early as this week, according to a source. Orr is a lawyer famous for managing the Chrysler bankruptcy in 2009. For his efforts, he received earnings of $1 million. He is a partner with Washington-based law firm Jones Day. His experience lies in business restructuring. He has previously functioned as the deputy director in the executive office of the U.S. Trustee program, a government watchdog in the bankruptcy process. Court records reveal that Orr had billed over $1 million in fees when he served as Chrysler’s representative during the bankruptcy of Chrysler in 2009. Orr has yet to comment on this report.

Last Tuesday, during a hearing in Lansing, Michigan, the state capital, the Detroit City Council attempted to persuade the state not to take over the finances of the city. Amid a sharp decline in population, Detroit suffered a declining tax revenue, worsening crime, and having an expensive and out of date government structure. Snyder commissioned a report, which determined that this city with a population of 700,000 has "operational dysfunction" in its government.

The city also has an overwhelming debt of $14 billion and a present fiscal year deficit of $100 million. If Orr gets confirmed as Detroit’s emergency financial manager, he will oversee the fiscal affairs of the city, including asset sales, contracts, consolidations, and layoffs. Furthermore, the manager can make recommendations on the city file for bankruptcy protection. If the state permits this move, it will be the largest Chapter 9 municipal bankruptcy in the U.S. Last Tuesday, the Detroit Free Press reported that Orr was the top choice for the job. Jones Day was chosen by Detroit Mayor Dave Bing as the city’s restructuring counsel.

If you liked the article, share on:

Pin It

Comments

Recommended

Lamborghini has disclosed that it is looking into the possibility of releasing electric vehicles. With the Volkswagen Group revealing that it will be releasing electric vehicles within several years, there...
by - March 25, 2017
Daimler AG, through its Smart division, has disclosed that its two electric models, the Smart ForTwo and the Smart ForFour are now open for orders in Germany. Official market launch...
by - March 25, 2017
Lamborghini has officially offered clear proof that the Huracán Performante was able to set a new record at the Nürburgring Nordschleife with a time of 6:52.01 It was in early...
by - March 25, 2017
Top Gear has revealed that for its “Stars in a Reasonably Fast Car” segment, it will now be using a slightly enhanced Toyota GT86, which in the U.S. market is...
by - March 24, 2017
Porsche is laying aside any plans of pushing another hybrid hypercar into their line-up -- at least not at this time. Oliver Blume, Porsche Global Chief confirmed in a recent...
by - March 24, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries