Detroit files for bankruptcy

Last updated 05:00 26/07/2013

Relevant offers


Labour's Annette King denies internal rift over TPPA deal The toxic tech sector culture and how to do things differently Unlimited holidays basically a no-brainer for employers Rising in Japan's workforce: Women Barack Obama puts his finger on the real danger of robots Can you sell a sweatshirt for $2000? Why fashion is looking for new ways to define luxury US asks why extremists drive Toyotas Bundesbank to doubters: Here is our gold Australian public servant wins legal fight over A$20,000 breast surgery Hillary Clinton doesn't support Trans-Pacific Partnership deal

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