WUC NEWS: Detroit

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<span style="background-color: white; font-family: Arial, Helvetica, sans-serif;">The city of Detroit urged a judge on Monday to approve its plan to get out of bankruptcy, calling it a sweeping effort to "solve some really bad problems" by wiping out billions in debt and spending $1.7 billion on better services in a long-term prescription for the Motor City.<br><br>"Look where we are: 7 billion-plus coming off the books, massive deferrals" of other debt, he said. "This is exactly the relief Detroit needed and it's gone about it in the right way."Judge Steven Rhodes will decide Nov. 7 whether Detroit's plan is fair and feasible in the largest public bankruptcy in U.S. history. It's an up-or-down ruling: He can't choose parts he likes and scratch others. Bruce Bennett, an attorney for the city, went through the key points and summarized evidence from a trial that began after Labor Day.</span><br>
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DETROIT MAKES FINAL ARGUMENTS TO EXIT BANKRUPTCY

The city of Detroit urged a judge on Monday to approve its plan to get out of bankruptcy, calling it a sweeping effort to "solve some...

<div style="background-color: white; background-repeat: no-repeat no-repeat; border-collapse: collapse; color: #333333; font-family: arial, sans-serif; font-size: 14px; line-height: 12px; margin-bottom: 13px; padding: 0px;">Sinking under huge debts and decades of mismanagement, <a href="http://www.guardian.co.uk/world/detroit" style="background-repeat: no-repeat no-repeat; border-collapse: collapse; color: #005689; margin: 0px; padding: 0px; text-decoration: none;" title="More from guardian.co.uk on Detroit">Detroit</a>formally filed for bankruptcy on Thursday, becoming the biggest US city ever to take such a drastic measure.</div><div style="background-color: white; background-repeat: no-repeat no-repeat; border-collapse: collapse; color: #333333; font-family: arial, sans-serif; font-size: 14px; line-height: 12px; margin-bottom: 13px; padding: 0px;">Kevyn Orr, Detroit's emergency manager, took the decision after failing to broker a deal between the city's bondholders and its pension funds.<br />

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</div><div class="separator" style="clear: both; text-align: center;"><iframe allowfullscreen="allowfullscreen" frameborder="0" height="266" mozallowfullscreen="mozallowfullscreen" src="https://www.youtube.com/embed/9LtoTziFoeI?feature=player_embedded" webkitallowfullscreen="webkitallowfullscreen" width="320"></iframe></div><h1 class="yt" id="watch-headline-title" style="border: 0px; color: #222222; font-family: arial, sans-serif; font-size: 24px; font-weight: normal; margin: 0px 0px 13px; overflow: hidden; padding: 0px;"><div style="background-color: white; background-repeat: no-repeat no-repeat; border-collapse: collapse; color: #333333; font-size: 14px; line-height: 12px; margin-bottom: 13px; padding: 0px;">The filing sets a new record for municipal bankruptcies and dwarfs the previous record filings by Jefferson County, Alabama, and Stockton, California. No other city of Detroit's size has ever gone bust.</div><div style="background-color: white; background-repeat: no-repeat no-repeat; border-collapse: collapse; color: #333333; font-size: 14px; line-height: 12px; margin-bottom: 13px; padding: 0px;">Orr and the city's creditors and pensioners will now begin a fraught legal consultation period while a court determines whether the city is eligible for "chapter 9" bankruptcy protection for its $18.5bn debts and liabilities. <img src="http://static.guim.co.uk/sys-images/Guardian/Pix/audio/video/2013/7/19/1374224253098/Downtown-Detroit-012.jpg" /></div><div style="background-color: white; background-repeat: no-repeat no-repeat; border-collapse: collapse; color: #333333; font-size: 14px; line-height: 12px; margin-bottom: 13px; padding: 0px;">Read more: <a href="http://www.guardian.co.uk/world/2013/jul/18/detroit-formally-files-bankruptcy">http://www.guardian.co.uk/world/2013/jul/18/detroit-formally-files-bankruptcy</a>   <div style="border: 0px; color: #666666; font-family: HelveticaNeue, 'Helvetica Neue', Arial, sans-serif; font-size: 12px; line-height: 18.5px; margin-bottom: 20px; padding: 0px; vertical-align: baseline;">Detroit has become the largest city in American history to file for bankruptcy. Kevin Orr, a bankruptcy expert hired by the state of Michigan in March to try and lead the Motor City away from a fiscal cliff, submitted the filing on Thursday, reported the AP.</div><div style="border: 0px; color: #666666; font-family: HelveticaNeue, 'Helvetica Neue', Arial, sans-serif; font-size: 12px; line-height: 18.5px; margin-bottom: 20px; padding: 0px; vertical-align: baseline;">On the same day, Michigan governor Rick Snyder laid out the case in support of Chapter 9 protection, saying that the “<span style="border: 0px; font-family: inherit; font-size: inherit; font-style: inherit; font-variant: inherit; line-height: inherit; margin: 0px; padding: 0px; vertical-align: baseline;">decision comes in the wake of 60 years of decline for the city</span>.”</div><div style="border: 0px; color: #666666; font-family: HelveticaNeue, 'Helvetica Neue', Arial, sans-serif; font-size: 12px; line-height: 18.5px; margin-bottom: 20px; padding: 0px; vertical-align: baseline;"><img alt="Detriot files for bankruptcy" src="http://www.hangthebankers.com/wp-content/uploads/2013/07/Detriot-files-for-bankruptcy.jpg" /></div><div style="border: 0px; color: #666666; font-family: HelveticaNeue, 'Helvetica Neue', Arial, sans-serif; font-size: 12px; line-height: 18.5px; margin-bottom: 20px; padding: 0px; vertical-align: baseline;">Snyder said that despite the “<span style="border: 0px; font-family: inherit; font-size: inherit; font-style: inherit; font-variant: inherit; line-height: inherit; margin: 0px; padding: 0px; vertical-align: baseline;">best efforts</span>” by Detroit’s Office of the Emergency Manager, the city was unable to reach a restructuring plan with its debtors – leaving more than $18 billion in outstanding debts.</div><div style="border: 0px; color: #666666; font-family: HelveticaNeue, 'Helvetica Neue', Arial, sans-serif; font-size: 12px; line-height: 18.5px; margin-bottom: 20px; padding: 0px; vertical-align: baseline;">“<span style="border: 0px; font-family: inherit; font-size: inherit; font-style: inherit; font-variant: inherit; line-height: inherit; margin: 0px; padding: 0px; vertical-align: baseline;">We must face the fact that the city cannot and is not paying its debts as they come due, and is insolvent</span>,” added Snyder.</div><div style="border: 0px; color: #666666; font-family: HelveticaNeue, 'Helvetica Neue', Arial, sans-serif; font-size: 12px; line-height: 18.5px; margin-bottom: 20px; padding: 0px; vertical-align: baseline;">The city of Detroit lost a quarter-million residents between 2000 and 2010, reports the AP. Boasting a population of 1.8 million in the 1950s, the municipality is now struggling to stay above 700,000 residents. An estimated 78,000 structures are currently abandoned in the city and unemployment has tripled since 2000 and, at roughly 15 percent of the population, is currently double the national average.</div><div style="border: 0px; color: #666666; font-family: HelveticaNeue, 'Helvetica Neue', Arial, sans-serif; font-size: 12px; line-height: 18.5px; margin-bottom: 20px; padding: 0px; vertical-align: baseline;"><img src="http://www.csmonitor.com/var/ezflow_site/storage/images/media/content/2013/0129-detroit/14884185-1-eng-US/0129-detroit_full_600.jpg" /></div><div style="border: 0px; color: #666666; font-family: HelveticaNeue, 'Helvetica Neue', Arial, sans-serif; font-size: 12px; line-height: 18.5px; margin-bottom: 20px; padding: 0px; vertical-align: baseline;">In addition to a severe loss of population, the city faces a host of issues hampering its economic recovery including a 47 per cent delinquency rate on property taxes and a murder rate at its highest in nearly 40 years. Detroit’s tax rates are already at their ‘legal limits,’ while city expenditures have surpassed revenue for six consecutive years.</div><div style="border: 0px; color: #666666; font-family: HelveticaNeue, 'Helvetica Neue', Arial, sans-serif; font-size: 12px; line-height: 18.5px; margin-bottom: 20px; padding: 0px; vertical-align: baseline;">According to Orr’s Thursday letter, negotiated settlements with the city’s creditors are not possible outside of bankruptcy “given the vast and fragmented pool of potential creditors.”</div><div style="border: 0px; color: #666666; font-family: HelveticaNeue, 'Helvetica Neue', Arial, sans-serif; font-size: 12px; line-height: 18.5px; margin-bottom: 20px; padding: 0px; vertical-align: baseline;">In June Orr met with some 180 bond insurers, pension trustees, union representatives and an assortment of creditors and asked them to take about 10 cents on the dollar for the city’s debt, reports the AP.</div>

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<div style="border: 0px; color: #666666; font-family: HelveticaNeue, 'Helvetica Neue', Arial, sans-serif; font-size: 12px; line-height: 18.5px; margin-bottom: 20px; padding: 0px; vertical-align: baseline;"><img height="384" src="http://static.guim.co.uk/sys-images/Guardian/Pix/pictures/2013/7/19/1374241146026/Detroit-010.jpg" width="640" /></div><div style="border: 0px; color: #666666; font-family: HelveticaNeue, 'Helvetica Neue', Arial, sans-serif; font-size: 12px; line-height: 18.5px; margin-bottom: 20px; padding: 0px; vertical-align: baseline;">The Washington-based bankruptcy attorney hired by Michigan in March had said then that the chances of bankruptcy for Detroit were 50-50.</div><div style="border: 0px; color: #666666; font-family: HelveticaNeue, 'Helvetica Neue', Arial, sans-serif; font-size: 12px; line-height: 18.5px; margin-bottom: 20px; padding: 0px; vertical-align: baseline;">“The average Detroiter has to understand this is a culmination of years and years of kicking the can down the road,” Orr said.</div><div style="border: 0px; color: #666666; font-family: HelveticaNeue, 'Helvetica Neue', Arial, sans-serif; font-size: 12px; line-height: 18.5px; margin-bottom: 20px; padding: 0px; vertical-align: baseline;">Detroit had for years relied on borrowing and deferred payments to its pension funds to keep the city afloat.</div><div style="border: 0px; color: #666666; font-family: HelveticaNeue, 'Helvetica Neue', Arial, sans-serif; font-size: 12px; line-height: 18.5px; margin-bottom: 20px; padding: 0px; vertical-align: baseline;"><img alt="Detroit is bankrupt" src="http://www.hangthebankers.com/wp-content/uploads/2013/07/Detroit-is-bankrupt.jpg" /></div><div style="border: 0px; color: #666666; font-family: HelveticaNeue, 'Helvetica Neue', Arial, sans-serif; font-size: 12px; line-height: 18.5px; margin-bottom: 20px; padding: 0px; vertical-align: baseline;">Source: <a href="http://www.hangthebankers.com/detroit-is-bankrupt/" style="font-family: arial, sans-serif; font-size: 14px; line-height: 12px;">http://www.hangthebankers.com/detroit-is-bankrupt/</a></div><div style="border: 0px; color: #666666; font-family: HelveticaNeue, 'Helvetica Neue', Arial, sans-serif; font-size: 12px; line-height: 18.5px; margin-bottom: 20px; padding: 0px; vertical-align: baseline;"></div></div> <script type="text/javascript">
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Detroit becomes largest US city to file for bankruptcy in history of USA

Sinking under huge debts and decades of mismanagement, Detroit formally filed for bankruptcy on Thursday, becoming the biggest US city ever...

WUC NEWS

DETROIT MAKES FINAL ARGUMENTS TO EXIT BANKRUPTCY

40% of Detroit’s population is about to have their water shut off

Detroit becomes largest US city to file for bankruptcy in history of USA

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