Detroit might choose as its emergency financial manager a bankruptcy expert who got more than $1 million in fees after Chrysler’s restructuring.
Kevyn Orr, 54, who is a partner with Washington law firm Jones Day, is expected to be named Detroit’s emergency financial manager by Michigan Governor Rick Snyder this week, according to an anonymous source. Orr is well known for its experience in business restructuring and as Jones Day’s third most active partner during Chrysler’s restructuring.
“Facts are stubborn things, and Kevyn is willing to be bound by those and willing to make courageous decisions,” said Ben Wilson, Managing Principal at the Washington law firm Beveridge & Diamond.
Detroit, known as the birthplace of the auto industry in the US, has been hardly hit by the US housing crisis, which left the city with rising crime and falling tax revenue. Last month Forbes even placed the city on the first spot in the 2013 List of America’s Most Miserable Cities, adding that as the city is in the impossibility of paying its bills, it might soon be taken over by the state. If Orr will decide to recommend the city file for bankruptcy, it would be the biggest municipal bankruptcy in the United States history.
“He’s got the right skill set to deal with the issues confronted here, if anybody does,” said Richardo Kilpatrick, a Detroit attorney.
by Ana Cezara Savin
) - Wednesday, March 13th, 2013 - filed under News
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