We Can Do Better: Detroit Loses Control Of City Finances

Appointed emergency manager warns Motor City against bankruptcy

Welp! Detroit’s mayor, Dave Bing, tried the best he could to avoid it. He did not do enough reigning in on city finances to convince Gov. Rick Snyder that an emergency manager wasn’t needed to make the Motor City flush again. On Thursday, Michigan officials hired Kevyn Orr to do the job. Orr brings expertise from his work at one of the world’s largest law firms. He bluntly told Detroit officials that they don’t want to go the Chapter 9 bankruptcy route to erase the city’s debt. “Don’t make me go to the bankruptcy court. You won’t enjoy it,” Orr said Thursday in a warning to city unions, vendors and other officials who have contributed to the Detroit’s $327 million budget deficit and more than $14 billion in long-term debt. Perhaps this is just what Detroit needs. Orr, who is a partner at the Cleveland-based Jones Day law and restructuring firm, successfully represented Chrysler during its restructuring. God’s speed, Detroit! (Associated Press)

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