Kevyn Orr, a partner in Washington, D.C. with the law firm Jones Day, is expected to be named as Detroit’s emergency financial manager by Michigan Governor Rick Snyder this week, Reuters reported yesterday. Orr has wide experience in business restructuring and a reputation as a calm leader who thoughtfully considers a range of views. Orr established himself as a restructuring leader during Chrysler's intense five-week dash to complete its sale to Fiat in 2009, a turnaround that some considered improbable at the time. Richardo Kilpatrick, a Detroit attorney who worked with Orr in the U.S. Trustee's office, said he expected Orr to try to work by consensus rather than by force. "He's got the right skill set to deal with the issues confronted here, if anybody does," Kilpatrick said. One decision that Orr is likely to face is whether to recommend the city file for bankruptcy, which, if allowed by the state, would be the biggest municipal bankruptcy in U.S. history. It has "operational dysfunction" in its government, debt of $14 billion, and a deficit projected to hit more than $100 million when its fiscal year ends on June 30, according to a report commissioned by the governor. On Monday, Detroit Mayor Dave Bing said the city had chosen Jones Day as its restructuring counsel.
