Detroit Bankrupt: Kevyn Orr Asks Federal Judge To Place City Under Chapter 9 Bankrupt

[austinite]

DETROIT — Detroit on Thursday became the largest city in U.S. history to file for bankruptcy, as the state-appointed emergency manager filed for Chapter 9 protection.
Kevyn Orr, a bankruptcy expert, was hired by the state in March to lead Detroit out of a fiscal free-fall and made the filing Thursday in federal bankruptcy court.

A number of factors – most notably steep population and tax base falls – have been blamed on Detroit's tumble toward insolvency. Detroit lost a quarter-million residents between 2000 and 2010. A population that in the 1950s reached 1.8 million is struggling 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 approximately 10,000 employees.

Orr was unable to convince a host of creditors, the city's union 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.

"Only one feasible path offers a way out," Gov. Rick Snyder said in a letter to Orr and state Treasurer Andy Dillon, approving the bankruptcy.

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

"The citizens of Detroit need and deserve a clear road out of the cycle of ever-decreasing services," Snyder wrote. "The city's creditors, as well as its many dedicated public servants, deserve to know what promises the city can and will keep. The only way to do those things is to radically restructure the city and allow it to reinvent itself without the burden of impossible obligations."

A turnaround specialist, Orr represented automaker Chrysler LLC during its successful restructuring. He issued a warning early on in his 18-month tenure in Detroit that bankruptcy was a road Detroit and its creditors did not want to tread.

He laid out his plans in June meetings with debt holders, in which his team warned there was a 50-50 chance of a bankruptcy filing. Some creditors were asked to take about 10 cents on the dollar of what the city owed them. Underfunded pension claims would have received less than the 10 cents on the dollar under that plan.

Orr's team of financial experts put together said that proposal was Detroit's one shot to permanently fix its fiscal problems. The team said Detroit was defaulting on about $2.5 billion in unsecured debt to "conserve cash" for police, fire and other services.

"Despite Mr. Orr's best efforts, he has been unable to reach a restructuring plan with the city's creditors," the governor wrote. "I therefore agree that the only feasible path to a stable and solid Detroit is to file for bankruptcy protection."

Detroit's budget deficit is believed to be more than $380 million. Orr has said long-term debt was more than $14 billion and could be between $17 billion and $20 billion.

Source: Detroit Bankrupt: Kevyn Orr Asks Federal Judge To Place City Under Chapter 9 Bankruptcy Protection

[Cuz]

interesting read

[< <Samson> >]

Can you still buy a house out there for like 5k?

I looked that shit up when I had a job and real money a few years ago

[spywizard]

yes you can, and if you are willing to live in that house you can get a job with the city/police etc..

[Honkey_Kong]

Can you still buy a house out there for like 5k?

I looked that shit up when I had a job and real money a few years ago

Problem is if you had money, you wouldn't be living in Detroit. The place is a shithole now and I'll be glad when they finally start construction of Delta City.

[Igifuno]

I'm in the real estate industry, and the housing and multi-family market has been struggling in Detroit for years now. Population has decreased by 124k over the past 5 years, and only projected to increase by about 2,500 in the next 5. That is a 0.01% growth rate.. doesn't get much worse than that.

Also, over 200k jobs have been lost in Detroit alone in the past 5 years. Vacancy is through the roof.. That city is in rough shape for sure.

[Honkey_Kong]

They need to just liquidate the city of Detroit. Sell every single asset the city has including that art museum and dissolve the city. Let it be unincorporated land.

[ChevyTruckRedneck]

Detroit has the highest ****** population of any major city in the USA.


take this how you will

edit: replace ****** with black

[Honkey_Kong]

Detroit has the highest ****** population of any major city in the USA.


take this how you will

edit: replace ****** with black

You guys know that I'm psychic? I'll make a prediction here that ChevyTruckRedneck isn't going to be around too much longer.

[marcus300]

Detroit has the highest ****** population of any major city in the USA.


take this how you will

edit: replace ****** with black

Your time here is over,

spend your spare time in the gym you really need it

[BG]

Detroit has the highest ****** population of any major city in the USA.


take this how you will

edit: replace ****** with black

Listen enough out of you. Take it somewhere else. My wife is black, one of the most incredible woman walking this earth. So shut up because your just a punk hiding tough behind a computer because you sure as hell wouldn't speak like this in front of me or any of threst of us for that matter. Go away no body gives a shit in what you think.

[Euroholic]

So were will the auto giants go????

[< <Samson> >]

Geez, that's uncalled for


I had enough to buy a whole block. But, what is the point? Just interesting to watch such a large city completely collapse.

[Igifuno]

Geez, that's uncalled for

I had enough to buy a whole block. But, what is the point? Just interesting to watch such a large city completely collapse.

Doesn't happen very often, that's for sure. I agree though, it's very interesting to watch.

I can imagine in a few years it may be feasible to see the entire city all but abandoned with no law enforcement and inhabited by the worst of the worst people. Gangs, etc.. Would be like a war zone.

[jasc]

Doesn't happen very often, that's for sure. I agree though, it's very interesting to watch.

I can imagine in a few years it may be feasible to see the entire city all but abandoned with no law enforcement and inhabited by the worst of the worst people. Gangs, etc.. Would be like a war zone.

[Igifuno]

Nice.

[< <Samson> >]

Straight up, that is the 1st thing popped to my mind. Escape from < lol

[ChiveOn]

Saw on the news today that the estimated figure was 18.5$ billion.
That's some crazy shit. I can't imagine anyone living there that had the money to get out...

[Rwy]

Everyone watch as the whole US will be in the same position very soon

[< <Samson> >]

Everyone watch as the whole US will be in the same position very soon

No shit huh

Of a full on large US city could collapse, it makes you really wonder.

WTF would happen?

[BG]

The whole world would go, thats why they developed the Euro.

[fit2bOld]

Michigans emergency manager laws takes voting rights away from
Citizens and creates cities that the residents have no voie

[Rwy]

The whole world would go, thats why they developed the Euro.

Yup, We would literally **** everyone if we went bankrupt. As much as every other Country think they are independent they are directly effected by what happens here

[Spartans09]

40 years of one party rule ends this way. The liberal utopia on full display. This is what they voted for over and over and over again. Now man the fvck up and deal with it!

The suburbs are doing decent. Housing prices are waaaay up in the last 6-10 months with very little inventory. My house is up over 30% in 6 months. I've been considering a move to Texas.

[Spartans09]

The half century building of the perfect storm of one party liberal rule (with 0 exceptions), massive corruption by elected slime balls and UNCHECKED public sector unions sucking every last drop out of the public tit. (There are roughly 248 public sector unions in the city of Detroit)
Should of happened 20 years ago. We would be at least as far along as, say, Pittsburg in reinventing ourselves.

[Rwy]

Parts of texas has a great economy right now

[Armykid93]

Parts of texas has a great economy right now

Texas in general has one of the best economies in the us.

[Euroholic]

Texas in general has one of the best economies in the us.

Ya i was reading about texas it gives more to the federal government then it gets back. Its keeping the country alive. Just like the great state of western australia!!!

[Rwy]

Texas in general has one of the best economies in the us.

Lots of upside down homes though

[Armykid93]

Lots of upside down homes though

That sucks. Property is cheap as hell around ft hood. After I get more established in the military I'll settle down here for sure. Either here or Arizona. Where ever the job after the military is for me.

[Armykid93]

Ya i was reading about texas it gives more to the federal government then it gets back. Its keeping the country alive. Just like the great state of western australia!!!

Lol pretty much, if most of the country could adopt Texas way of thinking financially we would be in a much better place.

[Honkey_Kong]

Lol pretty much, if most of the country could adopt Texas way of thinking financially we would be in a much better place.

Most of the country doesn't have the economic opportunities that were afforded to Texas.

[Armykid93]

Most of the country doesn't have the economic opportunities that were afforded to Texas.

Like what?

[Juced_porkchop]

Your time here is over,

spend your spare time in the gym you really need it

GOD I wish ironmag was like this!

Thank you!

[Juced_porkchop]

Yup, We would literally **** everyone if we went bankrupt. As much as every other Country think they are independent they are directly effected by what happens here

but he difference it they will be able to move on... the world does not revolve around the US and the US is not as important to the rest of the world as you may think. They seem to teach the US people they are the center of the world and every other place is not as good, but that is not fact.
there is ALOT of money owed by the US and to me that is the only reason the rest of the world would give a crap ( no offense meant, I love the peopl and land in US, but the US gov is a joke and hurting the country)
shit do you have ANY idea how much money China has lended the US? they owe trillions! China almost can own US if it gets much worse. NVM all the other places with investments in the US....

of course the rest of the world would feel it.... some drug dealers wont even take US cash anymore! so yeah it effects them... but not as much as you may think, atleast not in my opinion.
The world doesn't need the US, the US needs the world, in my view... most things are now import... products ect and jobs export... sure the other countries dont want to loos out on cash flow... but when they KNOW its not there and inflation keeps going up due to just printing more money,.,.. it will crumble...
I just hope the people rise up soon and wipe old congress out and bring in NEW people into congress and that are there with out mutli-million dollar agendas/deals with companies that dictate laws and deals.... they should be there for the people not greed... its really sad...


I hope things blow over and get better. if USA invested the money they did in war and so called terrorism into the country, then I am sure it would be much better off. more people are dying from this laws and agendas than ever did from a bombing...

I LOVE American people and some cool land too, was in Texas a couple years ago , last time i was there.... but i would NEVER move there due to the gov...
i mean look at the medical cannabis issue!!! THAT ALONE just goes to show you they dont give a shit about the people OR the state ( or state/peoples law).... the feds will push what ever agenda/deal they have made regardless of what the majority of Americans feel!
I mean there is ALOT of money to be made in the jail system, why empty it out....
anyway this stuff pissis me off and I am not even American, I am Canadian. but I am close enough to you ( just a short drive away) and I really do feel for you guys!

Rant over...

[Euroholic]

but he difference it they will be able to move on... the world does not revolve around the US and the US is not as important to the rest of the world as you may think. They seem to teach the US people they are the center of the world and every other place is not as good, but that is not fact.
there is ALOT of money owed by the US and to me that is the only reason the rest of the world would give a crap ( no offense meant, I love the peopl and land in US, but the US gov is a joke and hurting the country)
shit do you have ANY idea how much money China has lended the US? they owe trillions! China almost can own US if it gets much worse. NVM all the other places with investments in the US....

of course the rest of the world would feel it.... some drug dealers wont even take US cash anymore! so yeah it effects them... but not as much as you may think, atleast not in my opinion.
The world doesn't need the US, the US needs the world, in my view... most things are now import... products ect and jobs export... sure the other countries dont want to loos out on cash flow... but when they KNOW its not there and inflation keeps going up due to just printing more money,.,.. it will crumble...
I just hope the people rise up soon and wipe old congress out and bring in NEW people into congress and that are there with out mutli-million dollar agendas/deals with companies that dictate laws and deals.... they should be there for the people not greed... its really sad...


I hope things blow over and get better. if USA invested the money they did in war and so called terrorism into the country, then I am sure it would be much better off. more people are dying from this laws and agendas than ever did from a bombing...

I LOVE American people and some cool land too, was in Texas a couple years ago , last time i was there.... but i would NEVER move there due to the gov...
i mean look at the medical cannabis issue!!! THAT ALONE just goes to show you they dont give a shit about the people OR the state ( or state/peoples law).... the feds will push what ever agenda/deal they have made regardless of what the majority of Americans feel!
I mean there is ALOT of money to be made in the jail system, why empty it out....
anyway this stuff pissis me off and I am not even American, I am Canadian. but I am close enough to you ( just a short drive away) and I really do feel for you guys!

Rant over...

Great post!!!!!!!! I Agree 100% with you mate. No one country is that important that they alone can change the course of world events!!!!!

[Armykid93]

Great post!!!!!!!! I Agree 100% with you mate. No one country is that important that they alone can change the course of world events!!!!!

.............we do change world events. We aren't taught in school that we are the center of the universe but the world would take a massive hit if we go under

[Honkey_Kong]

Like what?

I tell you what, go to a place like Wyoming, New Mexico or Detroit and tell me about all the economic opportunities you find there. You can't have too much social welfare if there isn't anything generating wealth for the area. Detroit's proven that.

[Armykid93]

I tell you what, go to a place like Wyoming, New Mexico or Detroit and tell me about all the economic opportunities you find there. You can't have too much social welfare if there isn't anything generating wealth for the area. Detroit's proven that.

U

I'm not trying to be argumentative, just honestly don't know what your talking about. I have been to new Mexico. I think Texas has been successful because of conservative spending policies.