Detroit Becomes Largest US City To File For Ch. 9

Law360, Los Angeles (July 18, 2013, 5:40 PM ET) -- The financially embattled city of Detroit on Thursday filed for bankruptcy protection in the largest-ever Chapter 9 case for a city in U.S. history, potentially gutting the pensions of municipal retirees and costing bondholders nearly everything.

Michigan Gov. Rick Snyder said in a Thursday statement that he authorized emergency financial manager Kevyn Orr to seek federal bankruptcy protection for the city of 700,000 residents earlier in the day.

“The simple fact is, Detroit is broke,” he said. “This is a difficult, painful step, and it is...
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