– Gov. Rick Snyder today confirmed his determination
that a financial emergency exists in the city of Detroit and assigned
management of the emergency to the Local Emergency Financial Assistance
Loan Board (ELB), pursuant to Public Act 72 of 1990. The ELB named
Kevyn Orr as emergency financial manager, effective March 25,
in a meeting held in Lansing this afternoon.
thoroughly reviewing the information presented in Tuesday's hearing,
I remain convinced that a financial emergency exists in Detroit,"
Snyder said. "With this action and by working together, we
can rebuild the sound financial footing needed in Detroit. The
extensive experience that Kevyn Orr has in working to turn around
financially troubled organizations will serve the citizens of
Detroit well. He will bring a fresh, objective look at Detroit's
finances that is needed to end this financial crisis which has
been more than a half-century in the making."
said Orr's three decades of experience in restructuring financially
distressed businesses in diverse industries makes him the best
candidate to restore Detroit to financial stability and put the
city on a path to future growth.
am deeply saddened to see a historic city such as Detroit in severe
financial distress, but I am confident we can and will put the
city back on the path to success," Orr said. "I look
forward to working with Mayor Bing, City Council, citizens and
all stakeholders, including city employees and businesses, and
faith and philanthropic communities, to find effective solutions
resulting in long-term prosperity for all."
Michigan ties, earning both a bachelor's degree and law degree
from the University of Michigan, and has practiced in the areas
of business restructuring, financial institution regulation and
commercial litigation since 1984. In 2001 he joined Jones Day,
a global legal institution with more than 2,400 lawyers covering
five continents. He specializes in assisting organizations experiencing
severe financial trouble, ensuring that they were brought to proper
resolution, including representing Chrysler in all aspects of
its 2009 bankruptcy and restructuring. He also is the firm's partner
for hiring and diversity and serves on its advisory committee.
to joining Jones Day, Orr spent five years in the U.S. Department
of Justice, rising to the role of director of the United States
Trustees Program where he ensured the integrity of the bankruptcy
system while protecting the rights of all parties. He previously
served as assistant general counsel for Complex Litigation and
Bankruptcy at the Resolution Trust Corp. in Washington, D.C.;
as a litigator for the Federal Deposit Insurance Corp.; and was
a partner in the Miami-based law firm of Stearns, Weaver, Miller,
Wiessler, Alhadeff & Sitterson. He is a member of the bar
in Florida and the District of Columbia and is a member of the
American Bar Association and American Bankruptcy Institute.
review of the city's finances, conducted last fall, found that
a "serious financial problem" existed in Detroit as
a result of several issues. An independent, six-member financial
review team, appointed by Snyder on Dec. 18, 2012, concluded unanimously
Feb. 19 that a financial emergency exists in Detroit and that
no satisfactory plan is in place to overcome the city's fiscal
begin on Monday, March 25, and will work with Detroit officials
and seek citizen input to create a written financial plan that
will set a blueprint for solving the financial emergency. He will
assume the powers prescribed by Acts 72 and 436, and will be responsible
for administering all actions necessary to carry out the written
public act governing financial emergencies, Public Act 436 of
2012, will take effect March 28. All current EFMs, including Orr,
will transition to emergency managers and continue to work under
the guidelines of the new act.
information on the emergency financial manager and Detroit's financial
emergency, visit www.detroitcantwait.com.