Detroit files for bankruptcy

Last updated 05:00 26/07/2013

Relevant offers

World

Kiwis caught up in Ikea funiture recall after six children crushed Robert Scollay: A Brexit-free lunch for Britain? Probably not 'I miss Daddy': Family's anguish after father bullied into suicide Caitlin Fitzsimmons: Take the long view in the wake of the Brexit vote Airbnb reportedly seeks funding that would value the company at $42 billion Wall Street bounces back after two-day Brexit rout World's largest uncut diamond could fetch NZ$121.9 million at auction this week Britons clean post offices out of Irish passport application forms Italy plans $75.69 billion rescue of its financial system After 150 years, Jack Daniels finally credits slave with whiskey recipe

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