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A petition for declaring bankruptcy of Detroit was filed July 18, 2013 . According to experts, this will be the largest municipal bankruptcy in US history [1] . Detroit's debt and budget deficit exceeds $ 18–20 billion [2] , the main lenders are pension funds , health insurance companies , and labor unions representing urban employees [3] .
Detroit city officials filed for bankruptcy under Chapter 9 Section 11 of the United States Code governing municipal bankruptcy. Detroit is the largest US bankrupt bankruptcy city in the United States, previously considered Stockton , California , which declared bankrupt in 2012 . At the same time, the population of Detroit decreased from a peak of 1.8 million in 1950 to 700,000 in 2013 , which currently lives among tens of thousands of abandoned buildings, vacant lots and unlit streets [2] .
The difficult financial situation for Detroit, close to bankruptcy, began to take shape from the beginning of 2013 [4] , then the Governor of Michigan Rick Snyder appointed the Detroit Crisis Manager Kevin Orr , before that the automobile concern Chrysler [3] saved from bankruptcy. Despite this, attempts by Kevin Orr to agree with major creditors on debt restructuring failed [5] [6] , after which he was forced to file for bankruptcy with the permission of the governor.
On July 19, 2013, Judge Rosemary Akuilina of the Michigan Thirtieth Circuit Court in Lansing ruled that the introduction of the Detroit bankruptcy procedure in this situation violates article IX, section 24 of the Michigan Constitution, as it could damage the pension savings of citizens, and ordered Governor Rick Snyder to immediately withdraw the bankruptcy petition [7] [3] . On July 23, 2013, the Michigan Court of Appeals upheld the District Court's decision [8] [9] . On July 24, 2013, the crisis manager applied to the Federal Court of Insolvency (Bankruptcy) [10] ; On December 3, 2013, the court declared Detroit bankrupt with a total debt of $ 18.5 billion [11] .
Known U.S. Municipal Bankruptcy
- Bridgeport , Connecticut - 1991;
- Orange County , California - 1994 [12] ;
- Vallejo , California - 2008 [13] ;
- Jefferson County , Alabama - 2011 [12] ;
- Stockton , California - 2012 [14] ;
- San Bernardino , California - 2012 [15] .
- Hillview , Kentucky - 2015 [16]
See also
- The Decline of Detroit
Notes
- ↑ Detroit: The largest bankruptcy in US history . Russian service of the BBC (July 19, 2013). Date of treatment August 1, 2013.
- ↑ 1 2 Billions in Debt, Detroit Tumbles Into Insolvency . The New York Times (2013-07-018). Date of treatment August 1, 2013.
- ↑ 1 2 3 Bankruptcy of Detroit may be delayed . Russian service of the BBC (July 20, 2013). Date of treatment August 1, 2013.
- ↑ The Governor of Michigan recognized Detroit's proximity to bankruptcy . Lenta.ru (March 2, 2013). Date of treatment August 1, 2013.
- ↑ Governor of Michigan (March 14, 2013). Snyder confirms financial emergency in Detroit, turnaround expert Kevyn Orr appointed EFM . Press release . Retrieved 2013-04-03 .
- ↑ Shepardson, David . White House not offering Detroit help to avoid bankruptcy , The Detroit News (July 11, 2013). Archived July 19, 2013. Date of treatment July 19, 2013.
- ↑ Mullen, Ann . Judge rules Detroit Chapter 9 bankruptcy filing unconstitutional , Detroit: WXYZ-TV (July 19, 2013). Archived July 23, 2013. Date of treatment July 19, 2013.
- ↑ Egan, Paul . Michigan AG challenges judge's ruling that Detroit bankruptcy is unconstitutional , Detroit Free Press (July 19, 2013). Date of treatment July 19, 2013.
- ↑ Michigan Appeals Court halts challenges to Detroit's bankruptcy filing CNBC, July 23, 2013
- ↑ US judge halts challenges to Detroit's bankruptcy bid (July 24, 2013). Date of treatment July 24, 2013.
- ↑ In largest-ever US city bankruptcy, cuts coming for Detroit creditors, retirees , Reuters (December 3, 2013). Date of treatment December 3, 2013.
- ↑ 1 2 Alabama county files for largest municipal bankruptcy , CBS News (November 9, 2011). Date of treatment November 10, 2011. (unavailable link)
- ↑ Vallejo's path to bankruptcy - Vallejo Times Herald (link unavailable) . Date of treatment August 1, 2013. Archived February 7, 2009.
- ↑ Stockton, California files for bankruptcy . Reuters (June 28, 2012).
- ↑ City of San Bernardino, CA - Chapter 9 Bankruptcy . Date of treatment August 1, 2013.
- ↑ Elizabeth Campbell. Kentucky Town Is First to File for Bankruptcy After Detroit . Bloomberg. Date of treatment December 9, 2016.