Consultants' contracts soar to more than $62 million for Detroit bankruptcy
Source: Detroit Free Press
Contracts approved for consultants and lawyers advising emergency manager Kevyn Orr’s team as it restructures city government and prepares for a likely Chapter 9 bankruptcy have skyrocketed to at least $62 million, with some firms getting more than $10-million increases, according to records reviewed by the Free Press.
The documents, obtained with a Freedom of Information Act request, show an increase of as much as $45 million for consulting and legal work above the initial contracts that were signed in recent months and shared with the City Council. The bills are an early indicator of just how expensive the bankruptcy case may end up being for the city and state and raise anew an often-asked question: How can a city that’s broke afford pricey lawyers and consultants?
Meanwhile, legal experts say the tab likely will rise even more if a federal judge finds Detroit eligible to enter bankruptcy, a battle that begins in earnest in federal court on Oct. 23.
Orr’s spokesman and others say it’s money well spent on high-powered lawyers and consultants battling creditors who are fighting for every penny they can get from a city Orr says has no money to pay its choking debts and liabilities.
Read more: http://www.freep.com/article/20130929/NEWS01/309290063/detroit-bankrupt-consulting-contracts
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He decided to move Detroit into bankruptcy with his partners weeks before he was even appointed or had seen the books.
http://www.freep.com/article/20130722/NEWS01/307220086/Kevyn-Orr-Detroit-bankruptcy-emails
They are going to take everything that's not nailed down and then they're going to get a crowbar for the rest.
