Detroit filed for bankruptcy on Thursday under Chapter 9 protection, following a budget deficit of over $380 million.
The Motor City has had major financial troubles over the last few years, due to several reasons, including a large population decrease — but hope still remained when the state brought in bankruptcy expert Kevin Orr.
Though Kevin tried to propose and implement a plan to restructure Detroit’s current system, his difficulties in doing so, coupled with the city’s inherent problems led to the state-appointed emergency manager’s file for bankruptcy.
Michigan Governor Rick Snyder wrote:
"Despite Mr. Orr's best efforts, he has been unable to reach a restructuring plan with the city's creditors… I therefore agree that the only feasible path to a stable and solid Detroit is to file for bankruptcy protection."
We hope the city finds a way to recover quickly!
[Image via Getty Images.]
Tags: bankruptcy, chapter 9, city, detroit, files, legal matters, michigan, politik, sad sad, state appointed emergency manager