Detroit becomes largest US city to file for bankruptcy
Published:Friday | July 19, 2013 | 9:16 AM
The US city of Detroit in Michigan has become the largest American city ever to file for bankruptcy, with debts of at least US$15 billion.
State-appointed emergency manager Kevyn Orr has 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.
Detroit stopped unsecured-debt payments last month to keep the city running as Orr negotiated with creditors.
He proposed a deal last month in which creditors would accept 10 cents for every dollar they were owed.
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