Detroit Gets Emergency Financial Manager
A bankruptcy expert has been chosen to steer the troubled US city of Detroit out of its financial abyss.
Michigan Governor Rick Snyder announced his pick of Kevyn Orr to oversee the city's dire finances.
Mr Orr, a partner in the restructuring firm Jones Day, represented automaker Chrysler during its successful restructuring venture.
Mr Orr said he hopes to help the city avoid bankruptcy.
His contract will last between 12 and 16 months, but he said he will "be here as long as it takes. I'm committed".
The birthplace of Motown music and a once-prosperous auto manufacturing centre that exemplified American progress, Detroit is now the largest US city to have its finances placed under state control.
The city has lost a quarter-million residents over the last decade and is struggling beneath a $327m (£217m) budget deficit and more than $14bn (£9.3bn) in long-term debt.
City officials have been making ends meet on a month-to-month basis, and many employees have been forced to take days off without pay.
A state-appointed review team previously found Detroit needs to save about $15m (£10m) per month for three months in order to "remain financially viable."
Orr's hiring comes as the latest in a string of embarrassing setbacks for Detroit.
On Monday former Mayor Kwame Kilpatrick was convicted on corruption charges that included racketeering conspiracy. He faces up to 20 years in prison.
That conviction follows a previous jail stint for obstruction of justice in a separate scandal involving an extramarital affair with his chief of staff.