Updated at 5:08 p.m.
Kevyn Orr, a Jones Day partner in Washington with a background in business restructuring, is Michigan Gov. Rick Snyder's pick for emergency manager of Detroit.
According to The New York Times, Snyder announced today at a press conference that he was recommending Orr to the board that would formally hire an emergency manager for the city, which has been plagued with financial instability. This afternoon, the Emergency Loan Board hired Orr as the city's emergency manager effective March 25, according to a release from the governor's office.
“I 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 in a statement. “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.”
Orr brings considerable experience aiding troubled entities, notably representing Chrysler LLC in its bankruptcy proceedings and sale of assets. He could not immediately be reached for comment; according to the governor's website, Orr was in Detroit this afternoon meeting with the Emergency Loan Board.
"The extensive experience that Kevyn Orr has in working to turn around financially troubled organizations will serve the citizens of Detroit well," Snyder said in a statement. "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.”
Jones Day isn't a stranger to Detroit's situation. Earlier this week, as reported by The Am Law Daily, the city hired the firm to fight the state's decision to impose an emergency financial manager.
Orr has been a member of the D.C. Bar in 2002, but has been practicing since 1984. Before going into private practice at Jones Day in 2001, he served in the Executive Office for United States Trustees, a component of the U.S. Department of Justice that oversees the administration of bankruptcy cases; the Resolution Trust Corporation, a temporary government entity created to respond to the savings and loan crisis; and the Federal Deposit Insurance Corporation.
He was promoted to partner at Jones Day in 2004, according to Legal Times archives. It wasn't immediately clear how Orr's practice would be affected if he was hired. A firm spokesman couldn't be reached. In 2010, Orr became the firm's chair of firm recruiting and diversity.
Comments