Detroit Files For Bankruptcy - WLNS TV 6 Lansing - Jackson | Your Local News Leader

Detroit Files For Bankruptcy

DETROIT, Mich. (WLNS)- Big news from the Motor City tonight.

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

Thursday, state-appointed emergency manager Kevyn Orr 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 re-coup losses from bad bond investments and un-paid contracts.

Governor Rick Snyder has authorized Detroit's emergency manager to seek federal bankruptcy protection for the City of Detroit. "In many respects, this day has been six decades in the making. Detroit is buried under $18 billion in debt and unfunded liabilities. In fact, 38 cents of every city dollar goes toward debt repayment, legacy costs and other obligations. By 2017, that figure will go up to 65 cents per dollar," said Snyder.

The White House has said that they will be monitoring the situation in Detroit. "The White House will continue to partner with Detroit as it tries to recover and maintain its status as one of America's great cities," said White House Spokeswoman Amy Brundage.

 

 

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