Gov. Rick Snyder today authorized Detroit's emergency manager to seek federal bankruptcy protection for the city, saying it was the only viable option...
In a desperate attempt to avoid bankruptcy, Detroit’s Emergency Financial Manager, Kevyn Orr, announced the financially ailing city’s plan to immediately stop paying down $2.5 billion of its $18.5 billion of long-term debt. “Detroit’s road to recovery begins today,” Orr told a room full of nearly 150 of the city’s creditors. “Financial mismanagement, a shrinking population, a dwindling tax base and other factors over the last 45 years have brought Detroit to the brink of financial and operational ruin.” Orr, a bankruptcy attorney hired by Michigan to assist with the Motor City’s finical woes, said creditors could expect to be paid less than 10 cents on the dollar. “Our plan is bold because aggressive action is required to get Detroit back on its feet and improve the quality of life for the people who call Detroit home,” said Orr. Reuters[1] reports that Orr’s drastic plan [2]has already been put into effect, with the city skipping out on a $34 million payment due yesterday, a move Orr ...
