Detroit files for Chapter 9 municipal bankruptcy
Detroit becomes largest city in U.S. history to file for bankruptcy
DETROIT - The city of Detroit has filed for Chapter 9 municipal bankruptcy.
The city has become the largest in U.S. history to file for bankruptcy protection.
Detroit Emergency Manager Kevyn Orr officially made the filing on Thursday afternoon. Michigan Gov. Rick Snyder had to authorize the filing. Local 4 spoke with the governor Thursday evening.
"This was a very difficult and painful decision but if you look at it there is no other viable option," Snyder said. "People have been trying to get a resolution in good faith for some time now ... many people may say this is the lowest point in Detroit's history but if we weren't to do this, the way I view it, Detroit would continue going downhill."
Leaders at Detroit City Hall were reacting positively to the news, saying the city is going to be OK. Council Pro Tem Andre Spivey said councilmembers were not shocked. They have been waiting for this to happen but they weren't sure what day it would drop.
"I wish we could have had more time for Mr. Orr to negotiate with our employees, our unions, our retirees and our creditors and bondholders. But, this is the decision (Orr) felt he had to make," said Spivey. "But through all of this I want to reassure the citizens that we will still have a city to operate. Things won't shut down right now. Police, fire, DPS, all of our services continue to go forward."
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