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Washington Post: – Detroit goes bankrupt, largest municipal filing in U.S. history. – Detroit filed the largest municipal bankruptcy in the nation’s history Thursday, marking a new low in a long decline that has left the U.S. automaking capital bleeding residents and revenue while rendering city services a mess.
Wonkblog: – Detroit just filed for bankruptcy. Here’s how it got there. – On Thursday, the city of Detroit filed for bankruptcy — the largest city in the United States ever to do so. To get a better sense of just how Detroit got into such dire financial straits, it’s worth browsing through this May report on the city’s finances and this “Proposal for Creditors” from June. Detroit’s emergency manager Kevyn Orr laid out all the problems and economic headwinds facing the city.
Bloomberg: – Bankrupt Detroit shouldn’t scalp bondholders. – Plenty of analysts are asserting that Detroit’s bankruptcy is a unique case. Its finances are so calamitous, they argue, and its demographic and fiscal spirals so severe, that investors will treat its bankruptcy as a one-off event. So the haircut its bondholders will inevitably take is unlikely to result in significantly increased borrowing costs elsewhere.
WSJ: – What chapter 9 bankruptcy means for detroit. – Detroit filed for bankruptcy protection on Thursday under Chapter 9 of the U.S. Bankruptcy Code. Here is an explanation of what that means.
Forbes: – Why business is cheering Detroit’s bankruptcy. – Nobody wants to undergo surgery. But if you need it, there’s no point putting it off. All you want is to get through it quickly and be healthy afterwards. That pretty much sums up the view of Detroit business leaders after the city’s historic bankruptcy filing Thursday afternoon.
Reuters: – Chapter 9 bankruptcy puts Detroit in driver’s seat of its restructuring. – Detroit on Thursday filed the largest-ever municipal bankruptcy in the United States, with an estimated $18.5 billion in debt. Kevyn Orr, the city’s emergency manager, referred to Chapter 9 – the bankruptcy statute governing municipal filings – as a “powerful” tool to right Detroit’s ship.
Bloomberg: – U.S. automakers thrive as Detroit goes bankrupt. – The Motor City was the car capital of the world when David Cole graduated from a Detroit high school in 1955 and headed off to college to study auto engineering. Six decades later, the “motor” has mostly moved out, he said.
Grist: – Detroit: Bankrupt and broken — but not beyond hope. – Chapter 9 is not the end of a place that’s still in flux — it may be one indication of just how bad things got for the Motor City, but it doesn’t necessarily dictate how the city’s future will coalesce.
Detroit Free Press: – Pension funds filed lawsuit earlier than planned to beat Detroit bankruptcy. – Detroit’s two pension funds filed their lawsuit Wednesday against Michigan Gov. Rick Snyder and Detroit Emergency Manager Kevyn Orr earlier than initially planned because of the pace of the city’s march toward bankruptcy.
IndexUniverse: – Detroit spawns risk of muni-ETF purgatory. – Detroit’s historic bankruptcy declaration has created a fair amount of “headline risk” and probably given investors second thoughts about gravitating toward municipal bonds, but many of the muni bond ETFs available—even those with high-yield Detroit credits—are diversified enough to protect investors from the “Motor City’s” travails.
Wonkblog: – Detroit isn’t alone. The U.S. cities that have gone bankrupt, in one map. – All told, 8 cities and towns have filed for bankruptcy since 2010 — and two of the filings were rejected. An additional 28 utilities, water districts, hospital authorities, and other municipal units have also gone bankrupt in the wake of the financial crisis. But even if Detroit’s not alone, the sheer size of the city makes this case unprecedented.
TheAge: – Detroit bankrupt: almost $US20 billion in debt. – Detroit, the cradle of America’s automobile industry and once the nation’s fourth-most-populous city, has filed for bankruptcy, the largest US city ever to take such a course. The decision to turn to the federal courts, which required approval from both the emergency manager assigned to oversee the troubled city and from Michigan Governor Rick Snyder, is also the largest municipal bankruptcy filing in US history in terms of debt.
Guardian: – Detroit: a city in decline – in pictures. – Detroit has become the largest city in US history to file for bankruptcy after state-appointed emergency manager Kevyn Orr asked a federal judge for municipal bankruptcy protection. The city, once famous for its motor industry, has in recent times become synonymous with urban decay.
FT: – Detroit heads list of U.S. bankrupt cities. – Detroit has added its name to a growing list of US cities that have filed for bankruptcy, with debts of more than $18bn as a municipal fiscal crisis spreads from state to state.
MLive: – What a bankrupt Detroit could learn from Jefferson County, Ala. – As Detroit slides into bankruptcy, a major municipality in the South is struggling to get out of it, and Detroiters can expect a rough road ahead, according to University of Alabama finance professor Robert Brooks.
Detroit Free Press: – Detroit’s 20 largest unsecured creditors. – The following list shows Detroit’s top 20 unsecured creditors, according to a document filed Thursday, along with the total dollar amount of each creditor’s claim.
The Detroit News: – Detroit EM’s plan may hike bond costs in Michigan. – Michigan municipal leaders are growing increasingly alarmed by Detroit Emergency Manager Kevyn Orr’s plan to pay some municipal bondholders as little as a dime on the dollar as Wall Street pushes the city to sell its assets to pay back investors.
Detroit Free Press: – Judge says Detroit bankruptcy filing was unconstitutional, must be withdrawn. – An Ingham County judge says Thursday’s historic Detroit bankruptcy filing violates the Michigan constitution and state law and must be withdrawn.
Detroit: – Bankruptcy filing mistakenly exposes personal information of Detroit cops, firefighters. – The city’s historic bankruptcy case briefly exposed the names and home addresses of police officers and firefighters, a controversial mistake that could subject them to unwanted attention or worse.
#Detroit news not surprising but big negative headline on heels of difficult market certainly not helpful. Choppy trading likely continues
— AnthonyValeri (@Anthony_Valeri) July 19, 2013