Bankruptcy Expert Named To Manage Detroit’s Financial Crisis

Source: NBC News

Michigan Governor Rick Snyder on Thursday appointed bankruptcy and restructuring lawyer Kevyn Orr as Detroit’s emergency financial manager in a state takeover of the city that could ultimately lead to Detroit filing for the largest municipal bankruptcy ever.

Orr is a bankruptcy expert who represented automaker Chrysler LLC during its successful restructuring. He will take control of Detroit’s beleaguered finances, including a $327 million budget deficit and $14 billion in long-term debt.

Orr’s appointment also 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.

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