Once the symbol of American industrial power, Detroit became the largest U.S. city to file for bankruptcy Thursday, its finances and its neighborhoods ravaged hollowed out a long, slow decline, population and automobile manufacturing.
For the record, has been worried about a few months, the city municipal employee layoffs, sale of assets, raise fees and expand basic services such as garbage collection and Kiyoshi has been cut, it could mean an uncertain process.
"Only a viable path provides a way out, Gov. Rick Snyder, said:" In the letter of approval to move.
Filing marks the city and state leaders, they now must face the challenge of budget Detroit rebuild their shattered a turning point in just one year.
Bankruptcy experts hired by the state in March to stop the city's financial free fall, Kevyn Orr said, Detroit will continue to pay its bills and employees.
However, Fox - Rothschild's San Francisco office, said bankruptcy attorney Michael Sweet, "They do not pay anything they want, no one can sue them."
The plight of the city has accumulated for generations. In the 1950s, its population grew to 1.8 million people, many of whom were lured by the rich, paying dealers work. Later that decade, Detroit began to fall, because to start building suburban poach workers and enterprises developer.
Then, in the late 1960s, car companies began to open plant in other cities. Property values ??and tax revenues fell, the police can not control crime. In later years, the rise of importing cars from Japan began to cut the size of the U.S. auto industry.
In 2009, when the automotive industry melted down, only a few from General Motors and Chrysler factories to leave. General Motors is the only company headquartered in Detroit, although it has a huge research and testing center outside the city there are thousands of job opportunities.
Detroit lost a quarter of a million inhabitants in 2000 and 2010. Today, the population struggles to keep 700,000 or more.
The result is a city in the whole community and basic services almost deserted place cut off. Looming in the crumbling landscape is considered to be more than 3.8 million U.S. dollars, long-term debt could reach 20 billion dollar budget deficit.
In recent months, the city has relied on state support bond funds to meet the salaries of its 10,000 employees.
"This is an embarrassing thing, number one, to realize, in this case, we actually said," Kevin Frederick, a local vocational training school admissions representative. "No, we did not see it coming, I think we have to take a couple of steps back to move forward."
Orr filed federal bankruptcy court "Chapter 9 bankruptcy system and counties.
He was unable to convince creditors, unions and pension board hosts pennies on the dollar and the massive financial restructuring city to help. If you approve the application for bankruptcy protection, urban realizable assets to meet the payment requirements.
Thursday Orr said, he leaned backward "to work with creditors rejected criticism that he was too rigid." Anyone who needs that position, just do not be listening. "
Bankruptcy may continue until the summer or fall 2014, coinciding with the end of Orr's 18-month appointment, he said.
Snyder determine Earlier this year, Detroit in an emergency situation did not improve the financial plan. He is America's largest city, a state oversight, the national student loan board hired Orr. In his letter, filed for bankruptcy protection with Orr.
Creditors and the public servants "should know that promises of the city, and will continue," Snyder wrote. "The only way to do these things, is a fundamental restructuring of the city, and allow it to reshape itself is not impossible burden of obligation."
Turnaround expert, Orr represents carmaker Chrysler Corporation in its successful restructuring. He warned early in his tenure, bankruptcy path, he would prefer to avoid in Detroit.
Detroit area turnaround specialist James McTevia said some cities and retirement of workers filed a lawsuit to prevent the bankruptcy of Snyder's request for approval of Orr.
They believe that bankruptcy may change, which is in accordance with national laws protect pensions and retiree benefits.
Others are concerned that a bankrupt Detroit will lead to large and small businesses to rethink their business in the city. But General Motors does not expect any impact on its daily operations, car manufacturers, said in a statement on Thursday.
Detroit has more than doubled the population of Northern California communities Stockton, California, until Detroit has been the largest city in the United States when it was done in June 2012 filed for bankruptcy.
Before in Detroit, the largest municipal bankruptcy filings involving Jefferson County, Alabama, which is more than 40 billion U.S. dollars in debt, when it proposed in 2011. Another recent bankruptcy of the city is San Bernardino, California, this road in August 2012 after learning a $ 46 million deficit.
 



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