Friday, 15 March 2013

Michigan takes over Detroit finances



Governor of the US state of Michigan has chosen an emergency financial manager for Detroit, finalising a state takeover of the city's finances.

Rick Snyder announced that he had chosen Kevyn Orr, a lawyer and bankruptcy expert, for the position that will give him powers to control all of the Detroit's spending.

Orr, who has worked on the restructuring of Michigan-based carmaker Chrysler, said that he hoped to avoid a bankruptcy filing for Detroit, which would rank as the biggest municipal bankruptcy in US history.

Orr, who is expected to assume the role on March 25 will have wide-ranging authority to mend the city's budget, including renegotiating labour contracts, selling of assets and even suspending elected officials' salaries.

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