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Late Sunday night, Detroit Emergency Manager Kevyn Orr issued his state-mandated 45-day report, detailing the financial condition of the City of Detroit, and certain strategic and operational considerations necessary to effectuate a successful restructuring. “The City’s operations have become dysfunctional and wasteful after years of budgetary restrictions, mismanagement, crippling operational practices and, in some cases, indifference or corruption.” Although the report does not indicate how Kevyn Orr will effectuate Detroit’s restructuring, it appears that all options – including a chapter 9 municipal bankruptcy filing – remain on the table. With a city that is clearly insolvent on a cash-flow basis, a restructuring of liabilities “across all relevant stakeholders is necessary for the City’s operational and financial survival.” For more information, please click here.