Popular Front of Judea
14th June 2013, 23:45
This will turn out to be as significant as the near bankruptcy of New York in 1975. Neoliberalism marches on...
Detroit will immediately stop payments on about $2 billion in debt, the city's emergency manager announced Friday, an effort to conserve cash.
The manager, Kevyn Orr, also said Detroit will need to cut pay and pension and health benefits for city workers.
Debt holders are likely to get only pennies on the dollar.
...
Orr met with the city's leading creditors behind closed doors Friday morning, presenting his preliminary restructuring plan. He said further meetings are planned with the unions representing city employees.
Orr's statement and the 134-page restructuring plan did not mention the word "bankruptcy." But the risk still looms.
Orr is on record saying he wants to avoid bankruptcy but can not rule it out. It would be the largest city in U.S. history to file for bankruptcy protection.
On the brink, Detroit halts debt payments, plans pension cuts | CNN Money (http://money.cnn.com/2013/06/14/news/economy/detroit-debt-payments/index.html)
Detroit will immediately stop payments on about $2 billion in debt, the city's emergency manager announced Friday, an effort to conserve cash.
The manager, Kevyn Orr, also said Detroit will need to cut pay and pension and health benefits for city workers.
Debt holders are likely to get only pennies on the dollar.
...
Orr met with the city's leading creditors behind closed doors Friday morning, presenting his preliminary restructuring plan. He said further meetings are planned with the unions representing city employees.
Orr's statement and the 134-page restructuring plan did not mention the word "bankruptcy." But the risk still looms.
Orr is on record saying he wants to avoid bankruptcy but can not rule it out. It would be the largest city in U.S. history to file for bankruptcy protection.
On the brink, Detroit halts debt payments, plans pension cuts | CNN Money (http://money.cnn.com/2013/06/14/news/economy/detroit-debt-payments/index.html)