Detroit bankruptcy case can go forward: US judge
Published on Dec 4, 2013 12:39 AM
CHICAGO (AFP) - The city of Detroit won approval to move forward with its bankruptcy filing from a federal judge on Tuesday despite objections from city workers fearful of losing their pensions and other creditors, local media reports.
Saddled with more than US$18 billion (S$23 billion) in debt and a tax base depleted by decades of population loss and urban blight, the birthplace of the United States (US) auto industry has been so strapped for cash it can not even keep the streetlights on.
It filed for bankruptcy protection in July, the largest US city ever to do so.
After lengthy initial hearings and weeks of deliberation, Judge Steven Rhodes ruled Detroit is eligible to restructure its debt and liabilities under Chapter 9 of the US bankruptcy code that applies to municipalities.
To continue reading, log in if you are a subscriber
If you are not a subscriber, you can get instant, unlimited access here