Detroit becomes largest U.S. city to file for bankruptcy
Thu, 18 Jul 2013 20:56:34 GMT —
(AP) - 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
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.
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
(The Associated Press contributed to this article.)