The Beginning of the End
The city of Detroit experienced a long period of economic growth and financial profit which resulted in a large community full of people who were employed within the industrial factories. The automotive industry did wonders for the city and allowed it to become a major US city not only financially and economically, but also in terms of population as Detroit surpassed a population of a million residents. When the automotive industry that was the backbone of the city started to falter, so did the rest of the economy.
The city of Detroit experienced a long period of economic growth and financial profit which resulted in a large community full of people who were employed within the industrial factories. The automotive industry did wonders for the city and allowed it to become a major US city not only financially and economically, but also in terms of population as Detroit surpassed a population of a million residents. When the automotive industry that was the backbone of the city started to falter, so did the rest of the economy.
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Kevyn Orr was appointed to be the Emergency Manager of Detroit by Governor Rick Snyder on the 14th of March in 2013 just a few months before Detroit formally declared bankruptcy. |
Kevyn Orr
With the most important decisions of the bankruptcy saga, Kevyn Orr's appointment to become the emergency manager for Detroit changed the future of the city. With Detroit spiraling down a dark black hole, Orr stepped in and resumed the position of deciding what would be the best path for Detroit to take.
"Mr. Orr described Detroit’s problems, which include annual cash shortages, about $14 billion in long-term liabilities, and complaints by residents that broken streetlights are not replaced and that the police do not respond to calls — as “very challenging.” But he also struck an upbeat tone, saying that he hopes to someday reflect back on having participated in one of the nation’s “greatest turnarounds.”" - Monica Davey
However, despite his credentials which made him more than worthy for the job, there was a sense of confusion as to why somebody of his stature and position would assume a role that carried such weight and risk. Coming into the situation, there was no immediate solution and it seemed as if it would be a very long fix.
"Whatever the reason he agreed to come here, Kevyn Orr's masterful handling of Detroit's restructuring leaves the city in its best position since its long and merciless decline began 60 years ago." - The Detroit News
With the most important decisions of the bankruptcy saga, Kevyn Orr's appointment to become the emergency manager for Detroit changed the future of the city. With Detroit spiraling down a dark black hole, Orr stepped in and resumed the position of deciding what would be the best path for Detroit to take.
"Mr. Orr described Detroit’s problems, which include annual cash shortages, about $14 billion in long-term liabilities, and complaints by residents that broken streetlights are not replaced and that the police do not respond to calls — as “very challenging.” But he also struck an upbeat tone, saying that he hopes to someday reflect back on having participated in one of the nation’s “greatest turnarounds.”" - Monica Davey
However, despite his credentials which made him more than worthy for the job, there was a sense of confusion as to why somebody of his stature and position would assume a role that carried such weight and risk. Coming into the situation, there was no immediate solution and it seemed as if it would be a very long fix.
"Whatever the reason he agreed to come here, Kevyn Orr's masterful handling of Detroit's restructuring leaves the city in its best position since its long and merciless decline began 60 years ago." - The Detroit News
The Declaration of Bankruptcy
The economic troubles had begun to pile up and it had become well known that the city of Detroit had plummeted into an abyss of debt and financial struggle. The once stable economy of a city that had supplied much of the nation with automobiles had fallen into boarded up production plants that had been abandoned in favor of cheaper facilities.
There were no large industries left for the citizens of the city to employ themselves in; which lead to migration to the suburbs of Detroit in favor of a more promising future. Detroit's population began to steadily decline and the abandoned buildings did not take long to pile up as the emptiness of the city began to set in. It became even clearer that the only resolution for the city would be to declare bankruptcy in order to relieve themselves of the massive debt that had incurred.
The economic troubles had begun to pile up and it had become well known that the city of Detroit had plummeted into an abyss of debt and financial struggle. The once stable economy of a city that had supplied much of the nation with automobiles had fallen into boarded up production plants that had been abandoned in favor of cheaper facilities.
There were no large industries left for the citizens of the city to employ themselves in; which lead to migration to the suburbs of Detroit in favor of a more promising future. Detroit's population began to steadily decline and the abandoned buildings did not take long to pile up as the emptiness of the city began to set in. It became even clearer that the only resolution for the city would be to declare bankruptcy in order to relieve themselves of the massive debt that had incurred.
Once the city of Detroit formally declared bankruptcy on the 18th of July in 2013, it became the largest city in United States history to ever declare bankruptcy. |
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The landmark ruling ends more than four months of uncertainty over the fate of the case and sets the stage for a fierce clash over how to slash an estimated $18 billion in debt and long-term liabilities that have hampered Detroit from attacking pervasive blight and violent crime.
The judge that ruled on the case of the declaration of bankruptcy for the city of Detroit is named Steven Rhodes. "Rhodes said bankruptcy was a "foregone conclusion for a very long time. Cities often wait longer to file for bankruptcy than they should have, and the city of Detroit was no exception."" - Nathan Bomey
The judge that ruled on the case of the declaration of bankruptcy for the city of Detroit is named Steven Rhodes. "Rhodes said bankruptcy was a "foregone conclusion for a very long time. Cities often wait longer to file for bankruptcy than they should have, and the city of Detroit was no exception."" - Nathan Bomey