Detroit has become the largest city in U.S. history to file for bankruptcy. State-appointed emergency manager Kevyn Orr on Thursday asked a federal judge permission to place the city into Chapter 9 bankruptcy protection..
Detroit has become the largest city in U.S. history to file for bankruptcy. State-appointed emergency manager Kevyn Orr on Thursday asked a federal judge permission to place the city into Chapter 9 bankruptcy protection.
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Detroit's emergency manager has filed a plan to restructure the city's debts in the wake of the largest municipal bankruptcy in US history.
The plan, awaiting approval from a bankruptcy judge, includes cuts to pensions and creditors to drive down the $18bn (£10.8bn) debt.
Funds would also be devoted to demolishing abandoned city properties.
The city initially filed for bankruptcy protection in July 2013.
'Best path forward'
'We must move swiftly to emerge from bankruptcy so that the financial distress harming the city can end,' state-appointed manager Kevyn Orr said in a statement.
'We maintain that the plan provides the best path forward for all parties to resolve their respective issues and for Detroit to become once again a city in which people want to invest, live and work,' he added.
Specifics of the debt relief plan include:
Creditors, including bond insurers, will receive an estimated 20% of their claims
Police and firefighter retirees will receive at least 90% of their pensions, and cost of living allowances will be eliminated
The Detroit Institute of Arts will keep its city-owned art collection, with assistance from foundations and private donors
$1.5bn will be allocated over 10 years to city infrastructure and technology upgrades
The plan is reportedly likely to face obstacles moving forward, including court appeals should it be approved in ba
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A bankruptcy expert who represented automaker Chrysler LLC during its successful restructuring has been chosen to steer Detroit out of its financial abyss. Detroit is now the largest U.S. city to have its finances placed under state control.
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Unions and Detroit's public pension funds are protesting a federal judge's ruling that Detroit is eligible for bankruptcy. The groups claim the city didn't negotiate in good faith, which is an eligibility requirement under Chapter 9. (Dec. 3)
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Bankrupt Detroit's ability hold onto some of its artistic masterpieces could come down to the generosity of strangers. The city's emergency manager expects a report on the value of the 3,200 city-owned pieces at the Detroit Institute of Arts.
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The confirmation trial for the largest municipal bankruptcy in U.S. history is scheduled to start today. The federal proceeding is designed to determine whether bankrupt Detroit's restructuring plan will be approved.
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Kevyn Orr has agreed to step down as Detroit's emergency manager, saying that the city will no longer be in a financial emergency once it exits bankruptcy.
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'Octomom' Nadya Suleman has filed for bankruptcy, saying in a court filing that she has as much as $1 million in debt.
Suleman wants a fresh start and said in a statement that filing for bankruptcy Monday is what's best for her children, according to the Orange County Register .'I have had to make some very difficult decisions this year, and filing Chapter 7 was one of them,' Suleman said.The La Habra mother of 14 reports up to $50,000 in assets in federal court filings, which means she owes more than 20 times her net worth.
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