Detroit Bankrupt – Largest City To Do So in U.S. History
MARQUETTE, MI – (Great Lakes Radio News) – The city of Detroit has filed for the largest municipal bankruptcy in U.S. history.
The city, which is mired in debt according to estimates by Detroit Emergency Manager Kevyn Orr, filed for Chapter 9 municipal bankruptcy protection yesterday.
Governor Rick Snyder authorized Orr to file for bankruptcy saying it was a difficult decision but “it was the only viable option.”
In a four-page letter outlining his reasons for allowing the city to file for bankruptcy protection, the governor cited Detroit’s declining core services, noting the city’s high unemployment rate, homicide rate, average police response time of 58 minutes, faltering emergency vehicles, widespread street lighting outages and approximately 78,000 abandoned structures.
The filing begins a time period of up to three months when it will then be determined if the city is eligible for Chapter 9 municipal bankruptcy protection. The bankruptcy petition would seek protection from creditors and unions who are renegotiating $18.5 billion in debt and other liabilities.
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