The Detroit City Council voted to approve a $3.35 million contract to hire Jones Day as the financially crippled city’s restructuring counsel, but the vote came only after suspending the proceedings Tuesday for an hour amid a raucous protest by a group of angry city residents. After order was restored, the council voted 5-2 to retain the firm, prompting the still-riled crowd to erupt in a chant of "Shame! Shame! Shame!"
Detroit officials chose Jones Day for the assignment March 8 after 14 firms bid for the job of trying to help the city avoid bankruptcy and restructure $14 billion in long-term debt. Despite previous reports that the firm’s role would not become official until Detroit’s newly appointed emergency manager, former Jones Day partner Kevyn Orr, approved the contract, an Orr spokesman said Tuesday that because Jones Day signed an agreement letter before Orr officially started his job, his approval is likely not actually required.
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