City of Detroit Files for Bankruptcy Protection under Chapter 9 of the Bankruptcy Code - We Wish You Well, Detroit, Come Back Strong

Posted on Jul 18, 2013

Detroit filed bankruptcy on July 18, 2013, primarily because of pension obligations that have crippled the city's finances. it is the largest municipal bankruptcy filing in U.S. history.

It could take years to resolve the bankruptcy, but hopefully the city can get it done in a year, at least that is what Michigan's governor hopes.

A chapter 9 bankruptcy reorganization plan, if approved by the court, could slash retiree pensions, and pay creditors roughly 10 cents on the dollar for the city's unsecured debts.

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