The City of Detroit filed for federal bankruptcy Thursday afternoon in the country’s largest-ever municipal bankruptcy case.
The development comes after the Motor City’s emergency manager Kevyn Orr failed to strike a deal with the city’s bondholders, pension funds and other creditors outside of court.
The filing begins a 30- to 90-day period that will determine whether the city is eligible for Chapter 9 protection. The bankruptcy petition seeks protection from creditors and unions who are renegotiating $18.5 billion in debt and other liabilities, the Detroit Free Press reported.
• Jessica Chasmar can be reached at jchasmar@washingtontimes.com.
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