December 3, 2013
Great news for Detroit. Detroit was granted permission to file bankruptcy today. The effect on stakeholders is devastating but allows Detroit a second chance. The reality that other cities like “Detroit ‘needs help,’ is eligible for bankruptcy, judge rules” is model for future cities under the economic gun.
“Judge Steven Rhodes of U.S. Bankruptcy Court said, to the disappointment of pensioners and other creditors, who had raised a host of objections to the city’s Chapter 9 bankruptcy filing in July. The ruling makes Detroit, burdened with $18 billion in debt, the largest U.S. city to be granted bankruptcy protection,” reports LA Times.
Bankruptcy is one step for a downturn city to settle its debts and rebuild out of the ashes for a sustainable future.