Sheryl Toby Quoted in Crain’s Detroit Business

Sheryl Toby, member and co-leader of Dykema’s Bankruptcy practice, was quoted in a Crain’s Detroit Business article focusing on newly appointed Detroit Emergency Manager, Kevyn Orr, and his plans to turn around the financial fortunes of the city. The article appears in the March 18 issue of the Detroit weekly publication.

In the article, Toby, whose experience in the bankruptcy and restructuring arena spans more than 25 years, observes that one of Orr’s first tasks will be to restore normalcy to the city’s core functions so as to unite diverse constituencies. She notes that because the Emergency Manager role is so politically divisive, “simply getting the city services in line will get residents and businesses on board for further action.”

Toby also states that Orr might use the threat of Chapter 9 municipal bankruptcy as a “hammer” to ensure that all parties align with his plan. She’s quick to note, however, that if it came to that, Orr and his turnaround team would certainly have a “cohesive plan in place before filing.”

Observers won’t have to wait long to see what Orr has in mind for Detroit: under Michigan Public Act 436, the Emergency Manager has 45 days to devise a financial plan for the city and to present it for approval.