Bankrupt!

After months of speculation, and decades of mismanagement and population decline, Detroit has filed for bankruptcy. The milestone is the culmination of a turbulent half-century for the city. But some see it as a chance for a new start.

1 minute read

July 18, 2013, 2:00 PM PDT

By Jonathan Nettler @nettsj


Detroit - Renaissance Center

Patricia Drury / Flickr

"Detroit, the cradle of America’s automobile industry and once the nation’s fourth-most-populous city, has filed for bankruptcy, an official said Thursday afternoon, the largest American city ever to take such a course," report Monica Davey and Mary Williams Walsh.

"From here, there is no road map for Detroit’s recovery, not least of all because municipal bankruptcies are rare. Some bankruptcy experts and city leaders bemoaned the likely fallout from the filing, including the stigma it would carry. They anticipate further benefit cuts for city workers and retirees, more reductions in services for residents, and a detrimental effect on future borrowing."

"But others, including some Detroit business leaders who have seen a rise in private investment downtown despite the city’s larger struggles, said bankruptcy seemed the only choice left — and one that might finally lead to a desperately needed overhaul of city services and a plan to pay off some reduced version of the overwhelming debts. In short, a new start."

Thursday, July 18, 2013 in

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