On Thursday, Detroit became the largest city in U.S. history to file for bankruptcy.
Kevin Orr, whom Michigan Gov. Rick Snyder (R) appointed in March to become Detroit’s emergency manager,filed for Chapter 9 protection in federal bankruptcy court after he was unable to convince creditors “to take pennies on the dollar to help facilitate the city’s massive financial restructuring.”
In a letter that was attached to Detroit’s bankruptcy filing, Snyder wrote there was only “one feasible path offers a way out” for Detroit and that “the citizens of Detroit need and deserve a clear road out of the cycle of ever-decreasing services.”
“Despite Mr. Orr’s best efforts, he has been unable to reach a restructuring plan with the city’s creditors,” Snyder wrote. “I therefore agree that the only feasible path to a stable and solid Detroit is to file for bankruptcy protection.”