Report: Kevyn Orr says AC no bankruptcy shoo-in
Kevyn Orr, the restructuring expert appointed by Gov. Christie to help stabilize Atlantic City's finances, told Bloomberg News that it would be inappropriate for him to talk about whether Atlantic City was a "shoo-in" for bankruptcy.
Kevyn Orr, the restructuring expert appointed by Gov. Christie to help stabilize Atlantic City's finances, told Bloomberg News that it would be inappropriate for him to talk about whether Atlantic City was a "shoo-in" for bankruptcy.
"You know, nothing is shoo-in. But first of all I'm not the principal on Atlantic City. Kevin Lavin is the principal. He is the emergency manager. I'm just a counselor, a consultant in Atlantic City," Orr said in a question-and-answer piece published Thursday.
However, Orr then explained that while the conditions in Detroit and Atlantic City are very different, "the underlying issue for both of them is the current state of affairs is probably not sustainable. So it does take some intervention on a receivership basis to correct that and hopefully that will happen on a consensual basis."
What Orr, a high-end bankruptcy and restructuring lawyer, meant by "receivership" is not clear.
That's a term typically used in the context of insolvencies, such as bankruptcy or formal takeovers by a government agency.
It implies an inability to pay debts and other obligations in full.
Kevin Roberts, a Christie spokesman, called it "misleading" to emphasize Orr's use of the word "receivership," given that Orr earlier declined to say the Atlantic City was a shoo-in for bankruptcy. Roberts did not respond to a request for further clarification from Orr.
Lavin, who is working in Atlantic City's City Hall, did not respond to a request for comment.
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