Detroit files for bankruptcy

Last updated 05:00 26/07/2013

Relevant offers

World

Sydney madam Jamelie Lahood pursued over tax bills Honeylab medicalā€grade kanuka honey a vanguard for pharmaceutical honey industry Google CEO Sundar Pichai sees the end of computers as physical devices Box of 'original' flavoured Arnott's Shapes selling on eBay for $60 Carl Icahn warns 'day of reckoning' approaches, sells entire Apple stake Venezuela declares 2-day workweek due to severe electricity shortages Drug-maker hands out world's highest chief executive pay package Australia's human guinea pigs in demand from Asia for clinical trials Hanes makes play for Australia's Pacific Brands SpaceX says it will fly a spacecraft to Mars as soon as 2018

Detroit has become the largest city in US history to file for bankruptcy.

State-appointed emergency manager Kevyn Orr has asked a federal judge permission to place the city into Chapter 9 bankruptcy protection.

If approved, the filing would allow Orr to liquidate city assets to satisfy a host of creditors and city pensioners lined up to recoup losses from bad bond investments and unpaid contracts.

A number of factors - most notably steep population and tax base falls - have been blamed on Detroit's tumble toward insolvency.

Detroit lost 250,000 residents between 2000 and 2010.

Orr was unable to convince enough creditors, bondholders and employee pension representatives to accept pennies on the dollar as he attempted a fiscal restructuring of Detroit.

Ad Feedback

- AP

Special offers

Featured Promotions

Sponsored Content