Today Detroit became the largest city in U.S. history to file for Chapter 9 bankruptcy protection. Today’s filing begins a 30 to 90-day period that will determine if Detroit is in fact eligible for Chapter 9. Michigan is one of several states that requires approval from the governor in order to file for bankruptcy. Over the last month emergency manager Kevyn Orr has attempted to convince creditors to take pennies on the dollar, but negotiaions have so far been unsuccessful.
In response to emergencymanager Kevyn Orr filing for bankruptcy at 4:08 this afternoon
David Alexander Bullockreleased the following statement:
“The failure of emergency management to deal with Detroit’s municipal crisis is telling.
Despite the Snyder administrations promise that emergency management was going to
solve Detroit’s problems and help continue Detroit’s recovery, all the city has is a stack of
legal bills, consultant salaries, an anemic democratic life and the bankruptcy that was
supposed to be avoided. The question of long term municipal debt is a national question.
Now Detroit is ground zero over how the problem of dwindling revenue and rising costs
will be solved throughout this nation. Whatever the outcome, it is clear that it is immoral
and impractical to simply scapegoat retirees and public sector unions and that no
solution should jeopardize essential city services. The Motor City has hit a huge speed
bump but we will continue to travel down the road of recovery.”
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