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Thu March 14, 2013
Detroit Is 'Olympics Of Restructuring,' New Emergency Manager Says
Kevyn Orr, "a high-powered Washington, D.C., lawyer and University of Michigan graduate who worked on Chrysler's 2009 bankruptcy restructuring," has been given the job of straightening out the city of Detroit's desperate financial mess, the Detroit Free Press writes.
Michigan Gov. Rick Snyder (R), who earlier this month declared that the city is in a financial emergency, tapped Orr with the job Thursday.
In an interview before the announcement, Orr told The Detroit News that:
"This is going to be quite difficult and involved, but also quite satisfying to be able to do it appropriately. It's the Olympics of restructuring, if you will, and who doesn't want to play at the highest level?"
As we've previously posted, "the AP reports that Detroit is facing a $327 million budget deficit and "more than $14 billion in long-term debt."
According to the Free Press, "the City Council decided earlier today to not challenge Snyder's appointment in court." And the newspaper adds that:
"Detroit joins Flint, Hamtramck, Highland Park, Pontiac and Benton Harbor as cities that have been taken over by the state amid financial crises. Detroit's public schools are also under an emergency financial manager, as the district's student population fell amid the declining fortunes of Detroit, which has faced unprecedented population loss and a severe fall in tax revenues."