This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/world-us-canada-23369573
The article has changed 14 times. There is an RSS feed of changes available.
| Version 11 | Version 12 |
|---|---|
| Detroit becomes largest US city to file for bankruptcy | Detroit becomes largest US city to file for bankruptcy |
| (about 1 hour later) | |
| Detroit has become the largest US city ever to file for bankruptcy, with debts of at least $18bn (£12bn). | Detroit has become the largest US city ever to file for bankruptcy, with debts of at least $18bn (£12bn). |
| The city, once a symbol of US industrial power, is seeking protection from creditors who include public-sector workers and their pension funds. | The city, once a symbol of US industrial power, is seeking protection from creditors who include public-sector workers and their pension funds. |
| Unions described the bankruptcy filing as a power grab. | Unions described the bankruptcy filing as a power grab. |
| Detroit has faced decades of problems linked to declining industry. Public services are nearing collapse and about 70,000 properties lie abandoned. | Detroit has faced decades of problems linked to declining industry. Public services are nearing collapse and about 70,000 properties lie abandoned. |
| Mayor Dave Bing has vowed that public services will keep running and wages for public workers will be paid. | Mayor Dave Bing has vowed that public services will keep running and wages for public workers will be paid. |
| A new start? | A new start? |
| On Thursday, Michigan state-appointed emergency manager Kevyn Orr asked a federal judge to place the city into bankruptcy protection. | On Thursday, Michigan state-appointed emergency manager Kevyn Orr asked a federal judge to place the city into bankruptcy protection. |
| If it is approved, he would be allowed to liquidate city assets to satisfy creditors and pensions. | If it is approved, he would be allowed to liquidate city assets to satisfy creditors and pensions. |
| Detroit - known as Motor City for its once-thriving automobile industry - stopped unsecured-debt payments last month to keep the city running, as Mr Orr negotiated with creditors. | Detroit - known as Motor City for its once-thriving automobile industry - stopped unsecured-debt payments last month to keep the city running, as Mr Orr negotiated with creditors. |
| He proposed a deal last month in which creditors would accept 10 cents for every dollar they were owed. | He proposed a deal last month in which creditors would accept 10 cents for every dollar they were owed. |
| But two pension funds representing retired city workers resisted the plan. Thursday's bankruptcy filing comes days ahead of a hearing that would have tried to stop the city from making such a move. | But two pension funds representing retired city workers resisted the plan. Thursday's bankruptcy filing comes days ahead of a hearing that would have tried to stop the city from making such a move. |
| Mr Orr suggested at the time there was a 50-50 chance of the city needing to file for bankruptcy. He also said the city's long-term debt could be as high as $20bn. | Mr Orr suggested at the time there was a 50-50 chance of the city needing to file for bankruptcy. He also said the city's long-term debt could be as high as $20bn. |
| At a press briefing on Thursday, Mr Orr said filing for bankruptcy was the "first step toward restoring the city". | At a press briefing on Thursday, Mr Orr said filing for bankruptcy was the "first step toward restoring the city". |
| Alongside him, Detroit Mayor Dave Bing said that residents had to make a new start, and assured them the city would stay open despite the filing. | Alongside him, Detroit Mayor Dave Bing said that residents had to make a new start, and assured them the city would stay open despite the filing. |
| "Paychecks for our city employees will continue. Services will continue," he said. | "Paychecks for our city employees will continue. Services will continue," he said. |
| 'Busting the unions' | 'Busting the unions' |
| But Ed McNeil, the lead negotiator for a coalition of 33 unions, told Reuters news agency the move was about "busting the unions". | But Ed McNeil, the lead negotiator for a coalition of 33 unions, told Reuters news agency the move was about "busting the unions". |
| "This is not about fixing the city's finances," he said. "It's about the governor and his own agenda to take over the city of Detroit." | "This is not about fixing the city's finances," he said. "It's about the governor and his own agenda to take over the city of Detroit." |
| In a letter accompanying Thursday's filing, Michigan's Governor Rick Snyder, a Republican, said he had approved the request for Chapter 9 bankruptcy. | In a letter accompanying Thursday's filing, Michigan's Governor Rick Snyder, a Republican, said he had approved the request for Chapter 9 bankruptcy. |
| "It is clear that the financial emergency in Detroit cannot be successfully addressed outside of such a filing, and it is the only reasonable alternative that is available". | "It is clear that the financial emergency in Detroit cannot be successfully addressed outside of such a filing, and it is the only reasonable alternative that is available". |
| The White House said it was closely monitoring developments in Detroit. | The White House said it was closely monitoring developments in Detroit. |
| Analysts say there are concerns businesses might ditch their operations in Detroit. | Analysts say there are concerns businesses might ditch their operations in Detroit. |
| But US car company General Motors said on Thursday it did not expect any impact on its operations. | But US car company General Motors said on Thursday it did not expect any impact on its operations. |
| Detroit in decline | |
| The city has struggled with its finances for some time, driven by a number of factors, including a steep population loss. | The city has struggled with its finances for some time, driven by a number of factors, including a steep population loss. |
| The murder rate is at a 40-year high and only one third of its ambulances were in service in early 2013. | The murder rate is at a 40-year high and only one third of its ambulances were in service in early 2013. |
| And Detroit's government has been hit by a string of corruption scandals over the years. | And Detroit's government has been hit by a string of corruption scandals over the years. |
| Between 2000-10, the number of residents declined by 250,000 as residents moved away. | Between 2000-10, the number of residents declined by 250,000 as residents moved away. |
| Detroit is only the latest US city to file for bankruptcy in recent years. | Detroit is only the latest US city to file for bankruptcy in recent years. |
| In 2012, three California cities - Stockton, Mammoth Lakes and San Bernardino - took the step. | In 2012, three California cities - Stockton, Mammoth Lakes and San Bernardino - took the step. |
| But Thursday's move in Detroit is significantly larger than any of the earlier filings. | But Thursday's move in Detroit is significantly larger than any of the earlier filings. |
| Send your pictures and videos to yourpics@bbc.co.uk or text them to 61124 (UK) or +44 7624 800 100 (International). If you have a large file you can upload here. | Send your pictures and videos to yourpics@bbc.co.uk or text them to 61124 (UK) or +44 7624 800 100 (International). If you have a large file you can upload here. |
| Read the terms and conditions | Read the terms and conditions |