The city of Detroit’s recent bankruptcy filing made it the the largest U.S. city in history to seek Chapter 9 protection.
The filing (attached below) came in the face of $18.5 billion in debt to creditors and unions.
Detroit has seemingly tapped out its tax base, with no further ability to tax its population of 700,000, which is down 60% from its peak of 1.8 million in the 1950s.
The Motor City’s bankruptcy filing lays the groundwork for a historic effort to bail out a major U.S. city.
Kevyn Orr, a bankruptcy expert, was hired by the state as emergency manager. He made the filing Thursday in federal bankruptcy court.