Bankruptcy expert named Detroit emergency manager - KCTV5 News

Bankruptcy expert named Detroit emergency manager

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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.

A Washington, D.C.-based lawyer, Orr was appointed Thursday by a three-member board in Lansing after Gov. Rick Snyder announced his recommended choice in Detroit. He will make $275,000 a year.

The selection was made by state Treasurer Andy Dillon, budget director John Nixon and licensing and regulation director Steve Arwood. They interviewed Orr for about 12 minutes.

He says he will resign from his job at the Jones Day firm effective Friday. Dillon says Michigan is lucky to get someone of Orr's caliber at $275,000 a year, saying he's taking a "massive" pay cut.

Union activist Robert Davis says he'll file suit to challenge Orr's hiring, saying the board violated the Open Meetings Act.

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.

Copyright 2013 Associated Press. All rights reserved.

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