It’s all over the local news, but it’s a national story as well: Detroit has filed for Chapter 9 bankruptcy.
New York Times: Detroit Files for Bankruptcy, July 18. “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.”
Wall Street Journal: Detroit Files for Chapter 9 Bankruptcy, July 18. “The Chapter 9 case filed in U.S. District Court for the Eastern District of Michigan came after Kevyn Orr, the emergency manager, failed to reach agreements with enough of the bondholders, pension funds and other creditors to restructure Detroit’s debt outside of court. The final decision rested with Republican Gov. Rick Snyder, who had appointed Mr. Orr as Detroit’s overseer in March.”
United States District Court, Eastern District of Michigan does not yet have this filing in its “High Profile” cases.
Detroit Free Press, July 18. Detroit files for Chapter 9 bankruptcy amid staggering debts. “Detroit emergency manager Kevyn Orr, who in June released a plan to restructure the city’s debt and obligations that would leave many creditors with much less than they are owed, had warned consistently that if negotiations hit an impasse, he would move quickly to seek bankruptcy protection.”
Detroit News, July 18. Detroit files for bankruptcy. “A bankruptcy filing would come as an Ingham County judge is preparing Monday to hear arguments from retirees to block any attempt by Snyder to authorize a bankruptcy. A filing would produce an automatic stay of all pending litigation and would cap a month of intense talks between Orr’s team and creditors, which largely have failed to restructure as much as $20 billion in debt and long-term liabilities.”