Detroit files for Chapter 9 bankruptcy amid staggering debts

Detroit Michigan cityscapeDETROIT FREE PRESS – The City of Detroit filed this afternoon for Chapter 9 bankruptcy protection in federal court, laying the groundwork for a historic effort to bail out a city that is sinking under billions of dollars in debt and decades of mismanagement, population flight and loss of tax revenue.

The filing begins a 30- to 90-day period that will determine whether the city is eligible for Chapter 9 protection and define how many claimants might compete for the limited settlement resources that Detroit has to offer. The bankruptcy petition would seek protection from creditors and unions who are renegotiating $18.5 billion in debt and other liabilities.

Detroit emergency manager Kevyn Orr, who in June released a plan to restructure the city’s debt and obligations that would leave many creditors with much less than they are owed, had warned consistently that if negotiations hit an impasse, he would move quickly to seek bankruptcy protection.

Read more at the Detroit Free Press.

Comments

Leave a Reply

Devo does not want Scalise to 'Whip It'
A founding member of the 1980s band Devo really does not want to see House Majority Whip Steve Scalise “Whip It Good.” Scalise has been using the bands hit song “Whip It” at events and his staff recently created a joint fundraising committee with Rep. Patrick McHenry (R-N.C.) to raise money for a 1980s-themed birthday party […]
Jon Stewart rips Democrats for race-bait

“Oh, for f---s sake.”

Jon Stewart skewers VA wait times

In case you forgot, the VA is still terrible.

Stewart hits Cruz on privacy
Sen. Ted Cruz’s Monday presidential announcement made Christmas come early for Jon Stewart and “The Daily Show.” Stewart was positively gleeful as he prepared to mock everything from the kiss between Cruz and his wife to the fact that Liberty University students were forced to attend the campaign speech. But the liberal host did make […]
Jay Leno: College kids are too PC

Whether it's how ethanol subsidies are terrible or how college kids need to get over themselves, Jay Leno has been on point lately.

White House

White House promises not to use legal loophole to keep NSA spying alive if Patriot Act expires
If the Patriot Act expires, it will stop the National Security Agency’s bulk spying too. The Obama administration promised this week that it will not take advantage of a legal loophole to keep the NSA spying alive unless Congress re-authorizes the Patriot Act, Reuters reported. Section 215 of the Patriot Act, which authorizes the NSA to collect data on […]
In honor of National Puppy Day, here are the top 10 cutest presidential puppies

Today is National Puppy Day! To celebrate, we give you the top ten cutest puppies to grace the White House Lawn.

Obama: ‘By hook or by crook’ I’ll push my agenda through
This is probably not the smartest phrasing to use. President Obama had an interview with Huffington Post over the weekend and while much of the interview was his oft-repeated lines about how Republicans are the reason nothing is getting done in Washington, he added a new phrase about his legacy that is bound to raise […]
Obama tells Prince Charles that Americans like the royal family better than their own politicians

President Obama has admitted what we all already knew: Americans far prefer the Duchess of Cambridge to Michelle.

Obama suggested that voting should be mandatory. Now he’s being called ‘totalitarian.’

President Obama is taking some heat for suggesting this week that mandatory voting might not be such a bad idea.

Congress

Sen. Harry Reid will not seek re-election
WASHINGTON (AP) — Senate Democratic Leader Harry Reid, the wily Nevadan who dominated the Senate for a decade from the minority to the majority and back again, announced Friday he will retire after five terms. Reid, 75, who shepherded key Obama administration initiatives including the president’s health care law, lost his role as majority leader — […]
Schock: Lincoln faced challenges too
Embattled Rep. Aaron Schock (R- Ill.) gave his farewell speech on the House floor Thursday, promising that it was “not the end of a story, but rather the beginning of a new chapter.” While his own trials are more of the “Downton Abbey” decor and Katy Perry concert variety, Schock likened this tough time to that […]
Boehner, Pelosi read mean tweets
Taking a cue from Jimmy Kimmel’s famous “Mean Tweets” series, House Speaker John Boehner (R-Ohio), House Minority Leader Nancy Pelosi (D-Calif.), Sen Bernie Sanders (I-Vt.) and House Majority Leader Kevin McCarthy (R-Calif.) got in on the fun and read some mean tweets about themselves in a video for the 2015 Radio & Television Correspondents Association […]
GOP blocks Warren's student loan plan
THE HILL — Senate Republicans on Wednesday blocked an effort by Sen. Elizabeth Warren (D-Mass.) to attach an amendment aimed at lowering student loan rates to the budget. Senators voted 46-53 against Warren’s amendment to the Republican budget resolution. Warren’s amendment would have allowed people with college loan debt to refinance at interest rates from […]
Rand really liked those 'Stand with Rand' trolls

During Ted Cruz's big announcement at Liberty University yesterday--which students were required to attend--some Rand Paul supporters decided to troll Cruz with some "Stand with Rand" shirts: