Detroit city files for bankruptcy
Published 18/07/2013 | 21:47
Detroit has become the largest city in US history to file for bankruptcy.
State-appointed emergency manager Kevyn Orr has asked a federal judge for permission to place the city into Chapter 9 bankruptcy protection.
If approved, the filing would allow Mr 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 towards insolvency.
Detroit lost a quarter of a million residents between 2000 and 2010.
Mr 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.