Even in debt-ridden Detroit, it pays to be well-connected, reports CBS Local Detroit:
the law firm hired to oversee Detroit's restructuring has already racked up a $1.4 million bill…."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," [local radio station WWJ legal analyst Charlie] Langton said.
….. 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, which are running a $380 million deficit this year. He says long-term debt could top $17 billion and is asking bond-holders to accept steep markdowns on what they're owed. ….Orr said Detroit is "tapped out." He said there's still a 50-50 chance the city will file for a municipal bankruptcy.
Reason on Detroit. Reason's advice to another fiscally troubled midwest city, Cleveland.
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