Detroit EM Orr Likely to Stay on as Bankruptcy Consultant

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Kevyn Orr, emergency manager for the city of Detroit, speaks to the Detroit Economic Club in Detroit, Michigan, U.S., on Thursday, Oct. 2, 2013. A Detroit municipal-workers' union can ask a Michigan employment judge to put in writing his opinion that the city broke labor laws when it barred retirees from getting an extra pension check, a bankruptcy judge said. Photographer: Jeff Kowalsky/Bloomberg *** Local Caption *** Kevyn Orr
Jeff Kowalsky/Bloomberg

CHICAGO — Detroit Mayor Mike Duggan said he plans to ask Emergency Manager Kevyn Orr to stay on as a bankruptcy consultant when Orr's tenure is up on Sept. 29.

Duggan made the remarks during a Sept. 9 press conference on a deal with local counties to create a new regional authority for the Detroit Water and Sewer Department.

The  mayor said he expects to work out Orr's transition "smoothly and without drama." Orr will probably remain as a consultant but not as emergency manager, the mayor said.

Michigan Gov. Rick Snyder tapped Orr to take over the city in March 2013. The state's emergency manager law allows managers to stay for only 18 months. They can stay longer only if local officials vote to renew their contracts.

Orr and Snyder had wanted to wrap up the city's bankruptcy before the manager's exit. The trial on the plan of debt adjustment is expected to continue through at least mid-October.

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