The Herald Bulletin

Morning Update

Nation & World

July 18, 2013

Detroit files for bankruptcy

DETROIT — Once the very symbol of American industrial might, Detroit became the biggest U.S. city to file for bankruptcy Thursday, its finances ravaged and its neighborhoods hollowed out by a long, slow decline in population and auto manufacturing.

The filing, which had been feared for months, put the city on an uncertain course that could mean laying off municipal employees, selling off assets, raising fees and scaling back basic services such as trash collection and snow plowing, which have already been slashed.

"Only one feasible path offers a way out," Gov. Rick Snyder said in a letter approving the move.

Kevin Orr, a bankruptcy expert hired by the state in March to stop Detroit's fiscal free-fall, made the Chapter 9 filing in federal bankruptcy court.

Michael Sweet, a bankruptcy attorney in Fox-Rothschild's San Francisco office, said the city would pay current employees. But "beyond that, all bets are off."

"They don't have to pay anyone they don't want to," Sweet said. "And no one can sue them."

Detroit lost a quarter-million residents between 2000 and 2010. A population that in the 1950s reached 1.8 million now struggles to stay above 700,000. Much of the middle-class and scores of businesses also have fled Detroit, taking their tax dollars with them.

In recent months, the city has relied on state-backed bond money to meet payroll for its 10,000 employees.

Orr was unable to persuade a host of creditors, unions and pension boards to take pennies on the dollar to help facilitate the city's massive financial restructuring. If the bankruptcy filing is approved, city assets could be liquidated to satisfy demands for payment.

Snyder determined earlier this year that Detroit was in a financial emergency and without a plan for improvement. He made it the largest U.S. city to fall under state oversight when a state loan board hired Orr. His letter was attached to Orr's bankruptcy filing.

Text Only
Nation & World
  • Beautiful Bulldogs.jpg Lucey is tops in Iowa's 'Beautiful Bulldog' event

    Lucey is a slobbering 18-month-old pooch whose human family dreams of making her a therapy dog.

    April 23, 2014 1 Photo

  • Sherpas leave Everest; some expeditions nix climbs

    Sherpa guides packed up their tents and left Mount Everest's base camp Wednesday in an unprecedented walkout to honor 16 of their colleagues who were killed last week in the deadliest avalanche ever recorded on the mountain, climbers said.

    April 23, 2014

  • FBI investigates suspected serial child molester

    The FBI asked for the public's help Tuesday to identify at least 90 potential victims of a suspected child predator who worked at 10 American and other international schools abroad for more than four decades before committing suicide last month in Minnesota.

    April 22, 2014

  • Australia signals deeper search for Malaysian jet

    Australia may use more powerful sonar equipment that can delve deeper beneath the Indian Ocean in the hunt for the missing Malaysia Airlines jet as the prime minister said Wednesday that failure to find any clue in the most likely crash site would not spell the end of the search.

    April 22, 2014

  • Tech boom presents new wrinkles for Wrigley Field

    During a recent game at Wrigley Field, John Weber was using a pencil and scorecard to expertly track the game between his hometown Cubs and the Pittsburgh Pirates. The 86-year-old retired transit worker figures he is an increasingly rare kind of baseball fan.

    April 22, 2014

  • Comcast 1Q earns surge on upbeat NBC results

    Comcast Corp. said Tuesday that its first-quarter net income rose by 30 percent as ad revenue surged at broadcast network NBC, helped by the Winter Olympics in Sochi and Jimmy Fallon's elevation as host of "The Tonight Show."

    April 22, 2014

  • General Motors seeks more protection from suits

     General Motors Co. has filed suit in a U.S. bankruptcy court asking a judge to protect the company from legal claims for actions that took place before it emerged from bankruptcy in 2009.

    April 22, 2014

  • Disney's 'It's a Small World' turns 50 The timeless Disney tune "It's a Small World" that wafts through our memories from past theme park vacations turns 50 this year.

    April 21, 2014

  • Teen OK after riding in wheel well of Hawaii jet

    Officials say a 16-year-old boy is "lucky to be alive" and unharmed after flying from California to Hawaii stowed away in a plane's wheel well, surviving cold temperatures at 38,000 feet and a lack of oxygen.

    April 21, 2014

  • In show of defiance, thousands run Boston Marathon

    Under heavy security that included a battery of surveillance cameras and police officers on rooftops, nearly 36,000 runners hit the streets Monday in the first Boston Marathon since last year's deadly bombing, sending a powerful message of resilience.

    April 21, 2014

More Resources from The Herald Bulletin
AP Video
Bon Jovi Helps Open Low-income Housing in Philly Pipeline Opponents Protest on National Mall Hagel Gets Preview of New High-tech Projects S.C. Man Apologizes for Naked Walk in Wal-Mart New Country Music Hall of Fame Inductees Named 'Piles' of Bodies in South Sudan Slaughter New Yorkers Celebrate Cherry Blossom Blooms SCOTUS Hears Tv-over-Internet Case Justice Dept. Broadening Criteria for Clemency Chief Mate: Crew Told to Escape After Passengers 'Miss Meadows' Takes Holmes Back to Her Roots Biden: Russia Must Stop Talking, Start Acting David Moyes Out As Manchester United Manager Raw: Leopard Bites Man in India Iowa College Finds Beauty in Bulldogs High Court to Hear Dispute of TV Over Internet Stowaway Teen Forces Review of Airport Security
Parade
Magazine

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide
Helium debate
Helium