Detroit Files Bankruptcy
Tweet
Share
E-mail
Detroit has reached the end of its rope. The city made famous for its automotive ingenuity is seeking Chapter 9 bankruptcy after emergency manager Kevyn Orr failed to a reach a deal with creditors. Detroit becomes the largest city in U.S. history to file for bankruptcy.
Years of mismanagement, massive population exodus and tax base declines have all led to the city's downfall.
From 2000 and 2010, 25% of the city's population, or roughly a quarter million people, left. The 2010 census showed 713,777 residents, down from the 1950 peak population of 1.8 million.
Michigan Governor Rick Snyder approved Orr's request to commence bankruptcy proceedings. "... it is clear that the financial emergency in Detroit cannot be successfully addressed outside of such a filing," Synder said in a letter. The Governor said Detroit cannot meet its basic obligations to citizens and creditors.
On its inability to meet obligations to its citizens, it was noted that it citizens wait an average of 58 minutes for the police to respond to their calls, versus a national average of 11 minutes. Only 8.7% of cases are solved, versus a statewide average of 30.5%. Only a third of the City's ambulances were in service in the first quarter of 2013. In addition, approximately 40% of the City's street lights were not functioning in the quarter.
While bankruptcy will be seen as a low point in Detroit's history, "I think it will also be a foundation of the City's future," Snyder said.
Years of mismanagement, massive population exodus and tax base declines have all led to the city's downfall.
From 2000 and 2010, 25% of the city's population, or roughly a quarter million people, left. The 2010 census showed 713,777 residents, down from the 1950 peak population of 1.8 million.
Michigan Governor Rick Snyder approved Orr's request to commence bankruptcy proceedings. "... it is clear that the financial emergency in Detroit cannot be successfully addressed outside of such a filing," Synder said in a letter. The Governor said Detroit cannot meet its basic obligations to citizens and creditors.
On its inability to meet obligations to its citizens, it was noted that it citizens wait an average of 58 minutes for the police to respond to their calls, versus a national average of 11 minutes. Only 8.7% of cases are solved, versus a statewide average of 30.5%. Only a third of the City's ambulances were in service in the first quarter of 2013. In addition, approximately 40% of the City's street lights were not functioning in the quarter.
While bankruptcy will be seen as a low point in Detroit's history, "I think it will also be a foundation of the City's future," Snyder said.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Hertz reports Q2 2026 revenue of $2.4B, up 10% year over year
- Barclays Tracker on European Energy Cos Buybacks
- US suffers unexpected job losses in July, markets dial back rate hike expectations
Create E-mail Alert Related Categories
General NewsRelated Entities
BankruptcySign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
