Detroit authorities have submitted a petition to the court for recognition of the bankrupt. It will be the largest municipal bankruptcy case in the United States, reports Associated Press. Indebtedness of the city can reach up to $ 18.5 billion city budget deficit of $ 380 million
A formal petition to initiate the procedure for recognition of insolvency was filed in a special U.S. federal court for bankruptcy. The initiator of this move was the crisis manager of the city — Kevin Orr. He tried to negotiate with the creditors of Detroit, including pension and union funds, a radical restructuring and debt reduction, but failed.
Bankruptcy petition contains a link to an article on the protection of bankruptcy. The latter was approved by the Republican governor of Michigan — Rick Snyder.
"It is clear that the financial difficulties of Detroit can not be resolved without such a request. This is the only possible alternative," — said the politician.
If the court approves the petition of the bankruptcy estate of Detroit will be started up under the hammer to pay off debts.
The White House said it would carefully monitor the situation in Detroit.
Detroit is the center of the American automotive industry. In the city and the surrounding area headquarters of the "big three" — concerns GM, Ford and Chrysler.S 1950. the population declined from 1.7 million to 700 thousand serious decline began in Detroit 1980 he 1970. the crisis of the American automobile industry.