Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

3/15/2013 (2 years ago)

Catholic Online (www.catholic.org)

Detroit's emergency manager Kevyn Orr proud to help iconic American city

Bankruptcy expert Kevyn Orr has been selected to turn the cash-strapped and struggling Midwest City of Detroit around. Governor Rick Snyder says he chose Orr to be Detroit's emergency manager. Orr represented automaker Chrysler LLC during its successful restructuring.

Calling Detroit a 'storied American city,' emergency manager Kevyn Orr said that 'We can rise from the ashes. This is a beautiful city and a wonderful state that gave me my start. I feel compelled to do this job.'

Calling Detroit a "storied American city," emergency manager Kevyn Orr said that "We can rise from the ashes. This is a beautiful city and a wonderful state that gave me my start. I feel compelled to do this job."

Highlights

By Catholic Online (NEWS CONSORTIUM)

Catholic Online (www.catholic.org)

3/15/2013 (2 years ago)

Published in Business & Economics

Keywords: Kevyn Orr, Detroit, bankruptcy, management


LOS ANGELES, CA (Catholic Online) - During a news conference, Orr called Detroit a "storied American city.

"We can rise from the ashes," Orr said. "This is a beautiful city and a wonderful state that gave me my start. I feel compelled to do this job."

Orr said when he met with Snyder, he called the manager job "an unsung hero task." He asked the governor why he would bother to help the city, and Snyder's response was: "Kevyn, it's the right thing to do and it's the right time to do it."

Detroit was at onetime an iconic American city, symbolic of the nation's industrial strength with its fabled auto industry. After years of fleeing populations and economic downturn, Detroit is now the largest U.S. city to have its finances placed under state control.

Detroit has lost a quarter-million people during the last decade. The city also remains saddled with a $327 million budget deficit and more than $14 billion in long-term debt. Detroit has remained solvent on a month-to-month basis with the help of bond money held in a state escrow account. In addition, Detroit also has instituted mandatory unpaid days off for many city workers.

It was de3termined by a board of experts that Detroit would have had to either increase revenues or decrease expenditures -- or both -- by about $15 million per month for three months starting in January to "remain financially viable."

Coupled with underfunded city services such as police and fire departments and the absence of legitimate turnaround plans from Mayor Dave Bing and the City Council, ultimately forced Snyder to appoint an emergency manager.

Orr's hiring followed a release by Bing that Detroit selected Jones Day as the city's restructuring counsel. The international firm that has more than 2,400 attorneys on five continents has relevant experience in major disciplines needed to assist Detroit in implementing a successful restructuring strategy.

"The experience of the Jones Day law firm will be a valuable asset as we proceed with our plan for restructuring the city of Detroit," Bing said.

"The firm is well-regarded as experts in restructuring and insolvency, both with and without court supervision," James McTevia, president of a Michigan-based firm that specializes in turnaround management.
 
"I have worked with the firm many times over my 50 years as a bankruptcy receiver/trustee and also out of court. I am sure their goal is to keep Detroit out of the bankruptcy court."

With Orr's appointment, Detroit became the sixth Michigan city placed under state oversight. Pontiac, Flint, Ecorse, Allen Park and Benton Harbor already have managers, as do public school districts in Detroit, Highland Park and Muskegon Heights.

---


Pope Francis: end world hunger through 'Prayer and Action'


Copywriter 2015 - Distributed by THE NEWS CONSORTIUM

Pope Francis Prayer Intentions for July 2015
Universal:
That political responsibility may be lived at all levels as a high form of charity.
Evangelization: That, amid social inequalities, Latin American Christians may bear witness to love for the poor and contribute to a more fraternal society.



Comments


More Business & Economics

U.S. hit with price hikes: Apartment rent, restaurant meals and haircut prices are up Watch

Image of Starbucks has increased the price of their coffee from around 5 cents to 20 cents per cup.

By Linky C. (NEWS CONSORTIUM)

Prices of restaurant meals, gym memberships, haircuts and even a cup of coffee are rising in America, as well as apartment rent. American consumers are beginning to feel the financial burden, as the inflation rates in the U.S. start to kick in. MUNTINLUPA, PHILIPPINES ... continue reading


Big name companies demand Planned Parenthood to remove names off list of corporate donors Watch

Image of

By Nikky Andres (NEWS CONSORTIUM)

Representatives from Coca-Cola, Ford Motor Co. and Xerox openly state they've requested Planned Parenthood to take their company's names out as corporate donors to the controversial organization. MUNTINLUPA, PHILIPPINES (Catholic Online) - Planned Parenthood is now ... continue reading


Gun sales in the United States dramatically boost after massacre shootings Watch

Image of

By Atarah Haely (NEWS CONSORTIUM)

FBI's latest background check data shows the gun industry spiked in sales at about 11 percent last June. There are about 1.53 million background checks done, making it the busiest June ever since the agency started keeping track in 1999, according to CNN. The massive ... continue reading


Microsoft slammed for thousands of layoffs while demanding increase in immigration Watch

Image of

By Atarah Haely (NEWS CONSORTIUM)

About 7,800 Microsoft employees are in line to be fired, according to a company announcement last Wednesday. Most workers are from the seemingly failing mobile phone business, while Microsfot is said to fire a majority of Nokia's remaining employees ever since ... continue reading


Subway and Jared break up after controversial police raid at spokesman's home Watch

Image of Jared Fogle is known for his massive weight loss on a

By Nikky Andres (NEWS CONSORTIUM)

Subway spokesman, Jared Fogle's house was raided by FBI agents and Indiana State Police, two months after the former executive director of Fogle's foundation was arrested with charges of child pornography. MUNTINLUPA, PHILIPPINES (Catholic Online) - In their statement, ... continue reading


'Enough with all the rules' firework industry calls out to Obama Watch

Image of

By Nikky Andres (NEWS CONSORTIUM)

This year, more states have allowed people to buy pyrotechnic materials, such as sparklers and Roman Candles. In fact, this year has been wonderful for fireworks manufacturers, since the projected 2015 sales of celebratory explosives are estimated to top $1 billion. ... continue reading


Whole Foods accused of greatly overcharging customers Watch

Image of

By Nikky Andres (NEWS CONSORTIUM)

Whole Foods, the American foods supermarket chain that specializes in organic goods, has been accused of massive overcharging. The New York City Department of Consumer Affairs explained they have discovered "systematic overcharging for pre-packaged foods" at the city's ... continue reading


Strange and powerful 'boat swallowing' vortex appears in Lake Texoma Watch

Image of

By Nikky Andres (NEWS CONSORTIUM)

A strange, giant vortex, estimated to be around 8-feet in diameter, has appeared in Lake Texoma. This occurrence is surprising and perhaps threatening. However, there is an explanation. MUNTUNLUPA, PHILIPPINES (Catholic Online) - Lake Texoma is known as one of the ... continue reading


Is it time to stash money under mattress? 'It's time to hold physical cash,' fund manager says Watch

Image of Ian Spreadbury declined to predict the exact trigger but said it was more likely to happen in the next five years rather than 10.

By Catholic Online (NEWS CONSORTIUM)

Is it time to cash your paycheck and then stick it into a hatbox for a rainy day? According to British fund manager Ian Spreadbury, who invests more than £4 billion of investors' money is gravely concerned that a "systemic event" could rock markets. The upset ... continue reading


In spite of strong showing, Ron Paul predicts Apocalypse on Wall Street Watch

Image of Ron Paul has predicted economic doomsday previously. As stocks continue to make new highs, he remains just as convicted as ever that there

By Catholic Online (NEWS CONSORTIUM)

Things seem to be on an even keel right now but according to former Representative Ron Paul, the Federal Reserve's easy money policies have left stocks and bonds are on the verge of a massive collapse. LOS ANGELES, CA (Catholic Online) - "I am utterly amazed at ... continue reading


All Business & Economics News

Newsletters

Newsletter Sign Up icon

Stay up to date with the latest news, information, and special offers

Daily Readings

Reading 1, Numbers 11:4-15
4 The rabble who had joined the people were feeling ... Read More

Psalm, Psalms 81:12-13, 14-15, 16-17
12 So I left them to their stubborn selves, to follow ... Read More

Gospel, Matthew 14:13-21
13 When Jesus received this news he withdrew by boat ... Read More

Saint of the Day

Saint of the Day for August 3rd, 2015 Image

St. Lydia Purpuraria
August 3: Lydia Purpuraria (1st century) was born at Thyatira (Ak-Hissar), ... Read More

Inform, Inspire & Ignite Logo

Find Catholic Online on Facebook and get updates right in your live feed.

Become a fan of Catholic Online on Facebook


Follow Catholic Online on Twitter and get News and Product updates.

Follow us on Twitter