MENU

      Detroit becomes largest city in U.S. history to file for bankruptcy


      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.


      If approved, the filing would allow Orr to liquidate city assets to satisfy a host of creditors and city pensioners lined up to recoup losses from bad bond investments and unpaid contracts.


      A number of factors - most notably steep population and tax base falls - have been blamed on Detroit's tumble toward insolvency.


      Detroit lost a quarter-million residents between 2000 and 2010.


      Orr was unable to convince enough creditors, bondholders and employee pension representatives to accept pennies on the dollar as he attempted a fiscal restructuring of Detroit.

      component-story-more_media_horiz-v1-01
      FOLLOW US ON TWITTER