The city of Detroit filed for federal bankruptcy protection Thursday
after decades of decline, a new low for a city that once defined
industrial America's might but was hollowed out by the flight of
residents and businesses to the suburbs.
The filing by the automobile capital and onetime music powerhouse—which has liabilities of more than $18 billion—is the country's largest-ever municipal bankruptcy case.
The move to restructure the debt is bound to set off months, if not years, of legal wrangling, asset sales and cuts to benefits for Detroit workers and retirees, including 20,000 on city pensions. Owners of the city's bonds are expected to battle with retirees and others for pieces of the city's diminished wealth.
http://online.wsj.com/article/SB10001424127887323993804578614144173709204.html?mod=WSJ_myyahoo_module
The filing by the automobile capital and onetime music powerhouse—which has liabilities of more than $18 billion—is the country's largest-ever municipal bankruptcy case.
The move to restructure the debt is bound to set off months, if not years, of legal wrangling, asset sales and cuts to benefits for Detroit workers and retirees, including 20,000 on city pensions. Owners of the city's bonds are expected to battle with retirees and others for pieces of the city's diminished wealth.
http://online.wsj.com/article/SB10001424127887323993804578614144173709204.html?mod=WSJ_myyahoo_module
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