So Detroit, or more likely, the State of Michigan, is paying a “bankruptcy expert” to manage Detroit’s financial mess and the bankruptcy expert Emergency Manager hires his former law firm at $1000 per hour to do the work the Emergency Manager was hired to do. This should go over well with the natives. From CBS Detroit:
“Emergency Manager Kevyn Orr approved the fees totaling about $1.4 million, but what makes this even more controversial is that the law firm getting the money is Jones Day – that’s Orr’s former law firm. Oh, you want some more controversy? That $1.4 million is just for six weeks of work,” Langton said.
The report says the costs were associated with sophisticated restructuring advice, labor and pension analysis, and Chapter 9 planning. Orr has defended the expense, saying top lawyers are needed because of what’s at stake . . .
Orr is a bankruptcy expert hired in March by the state to fix Detroit’s finances . . .