Jones Day and Detroit's Bankruptcy

Jones Day (the same law firm that has been used by Costa Mesa at times) is involved in the financial restructuring of Detroit.  Kevin Orr, a partner in the Business Reorganization and Restructuring practice area has been named Emergency Financial Manager for the City of Detroit.  The Business Reorganization and Restructuring practice has a directory so you can see if there are any names you recognize from billing statements.  Jones Day is a very large global law firm and people move around to engagements based on where they are needed and don't always stay at one office.

From the press release about Orr's appointment 

"The Firm is very proud that Governor Snyder and the Emergency Board have asked our partner Kevyn Orr to serve as the Emergency Financial Manager of the City of Detroit," said Jones Day Managing Partner Steve Brogan. "Detroit is one of the greatest cities in the history of the country. Kevyn is a special and talented leader who possesses the empathy and the competence that will be needed to make, and then execute, the decisions required for the City of Detroit to find a sustainable path forward."

Detroit filed for bankruptcy on July 18, 2013, with Jones Day being the law firm handling the bankruptcy.

Here is the bankruptcy filing  Download Detroit Bankruptcy Filing

 

This is the offer to creditors, including pension plans   Download Detrolt Proposal for Creditors

The Detroit Free Press has great articles on the emergency financial manager mess and the subsequent bankruptcy.  Here's a starting place -

Detroit Files for Bankrutpcy, Setting Off Battles with Creditors, Pensions, Unions

American Lawyer Daily also has a great article about Jones Day involvement.  Kenneth Klee, who worked on the Orange County bankrutpcy calls the move 'panicked'.  Read the article for more of his insights.

Jones Day Steers Detroit to Chapter 9 Bankruptcy

Jim Righeimer has been talking about how Costa Mesa is insolvent, out of money and may have to declare bankruptcy.  (Nevermind the extravagant 60th Anniversary Party, $650,000 for lights at Fairview Park, a new parking lot at Fairview Park, long running lawsuit against employee association, litigation over the 1st attempt at the charter, putting the charter up for a 2nd run after a strong defeat, trips to Las Vegas to meet with developers, money for donations to sports leagues, money to buy motels, .....)  Jones Day is already on the legal roster for Costa Mesa. People need to watch this situation and dig into it to make sure Costa Mesa doesn't go the way of Detroit.