This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/news/world-us-canada-23369573

The article has changed 14 times. There is an RSS feed of changes available.

Version 12 Version 13
Detroit becomes largest US city to file for bankruptcy Detroit becomes largest US city to file for bankruptcy
(35 minutes later)
Detroit has become the largest US city ever to file for bankruptcy, with debts of at least $18bn (£12bn). Detroit may be gearing up for a battle with creditors the day after it became the largest US city ever to file for bankruptcy, with $18bn (£12bn) of debt.
The city, once a symbol of US industrial power, is seeking protection from creditors who include public-sector workers and their pension funds. Creditors fear they will not be paid, Michigan Governor Rick Snyder said, adding the city is "basically broke".
Unions described the bankruptcy filing as a power grab. Court papers filed on Thursday night listed 100,000 entities as creditors to the city. But unions have described the bankruptcy filing as a power grab.
Detroit has faced decades of problems linked to declining industry. Public services are nearing collapse and about 70,000 properties lie abandoned. Detroit, once a symbol of US industrial power, has faced decades of decline.
It is seeking protection from creditors who include public-sector workers and their pension funds.
Detroit's problems stem from declining industry. Public services are nearing collapse and about 70,000 properties lie abandoned.
Mayor Dave Bing has vowed that public services will keep running and wages for public workers will be paid.Mayor Dave Bing has vowed that public services will keep running and wages for public workers will be paid.
A new start?A new start?
Mr Snyder said in a televised statement on Friday morning: "Currently those creditors have a situation where they don't know what they'll get paid, and whether they'll get paid at all."
"The growth of Detroit is critically important for all of us," he said. "Let's Detroit on the path to being a great city again."
"Today is a major step to getting on that path," the governor added.
On Thursday, Michigan state-appointed emergency manager Kevyn Orr asked a federal judge to place the city into bankruptcy protection.On Thursday, Michigan state-appointed emergency manager Kevyn Orr asked a federal judge to place the city into bankruptcy protection.
If it is approved, he would be allowed to liquidate city assets to satisfy creditors and pensions.If it is approved, he would be allowed to liquidate city assets to satisfy creditors and pensions.
Detroit - known as Motor City for its once-thriving automobile industry - stopped unsecured-debt payments last month to keep the city running, as Mr Orr negotiated with creditors.Detroit - known as Motor City for its once-thriving automobile industry - stopped unsecured-debt payments last month to keep the city running, as Mr Orr negotiated with creditors.
He proposed a deal last month in which creditors would accept 10 cents for every dollar they were owed.He proposed a deal last month in which creditors would accept 10 cents for every dollar they were owed.
But two pension funds representing retired city workers resisted the plan. Thursday's bankruptcy filing comes days ahead of a hearing that would have tried to stop the city from making such a move.But two pension funds representing retired city workers resisted the plan. Thursday's bankruptcy filing comes days ahead of a hearing that would have tried to stop the city from making such a move.
Mr Orr suggested at the time there was a 50-50 chance of the city needing to file for bankruptcy. He also said the city's long-term debt could be as high as $20bn.Mr Orr suggested at the time there was a 50-50 chance of the city needing to file for bankruptcy. He also said the city's long-term debt could be as high as $20bn.
At a press briefing on Thursday, Mr Orr said filing for bankruptcy was the "first step toward restoring the city".At a press briefing on Thursday, Mr Orr said filing for bankruptcy was the "first step toward restoring the city".
Alongside him, Detroit Mayor Dave Bing said that residents had to make a new start, and assured them the city would stay open despite the filing.Alongside him, Detroit Mayor Dave Bing said that residents had to make a new start, and assured them the city would stay open despite the filing.
"Paychecks for our city employees will continue. Services will continue," he said."Paychecks for our city employees will continue. Services will continue," he said.
'Busting the unions''Busting the unions'
But Ed McNeil, the lead negotiator for a coalition of 33 unions, told Reuters news agency the move was about "busting the unions".But Ed McNeil, the lead negotiator for a coalition of 33 unions, told Reuters news agency the move was about "busting the unions".
"This is not about fixing the city's finances," he said. "It's about the governor and his own agenda to take over the city of Detroit.""This is not about fixing the city's finances," he said. "It's about the governor and his own agenda to take over the city of Detroit."
In a letter accompanying Thursday's filing, Michigan's Governor Rick Snyder, a Republican, said he had approved the request for Chapter 9 bankruptcy.In a letter accompanying Thursday's filing, Michigan's Governor Rick Snyder, a Republican, said he had approved the request for Chapter 9 bankruptcy.
"It is clear that the financial emergency in Detroit cannot be successfully addressed outside of such a filing, and it is the only reasonable alternative that is available"."It is clear that the financial emergency in Detroit cannot be successfully addressed outside of such a filing, and it is the only reasonable alternative that is available".
The White House said it was closely monitoring developments in Detroit.The White House said it was closely monitoring developments in Detroit.
Analysts say there are concerns businesses might ditch their operations in Detroit.Analysts say there are concerns businesses might ditch their operations in Detroit.
But US car company General Motors said on Thursday it did not expect any impact on its operations.But US car company General Motors said on Thursday it did not expect any impact on its operations.
Detroit in decline
The city has struggled with its finances for some time, driven by a number of factors, including a steep population loss.The city has struggled with its finances for some time, driven by a number of factors, including a steep population loss.
The murder rate is at a 40-year high and only one third of its ambulances were in service in early 2013.The murder rate is at a 40-year high and only one third of its ambulances were in service in early 2013.
And Detroit's government has been hit by a string of corruption scandals over the years.And Detroit's government has been hit by a string of corruption scandals over the years.
Between 2000-10, the number of residents declined by 250,000 as residents moved away.Between 2000-10, the number of residents declined by 250,000 as residents moved away.
Detroit is only the latest US city to file for bankruptcy in recent years.Detroit is only the latest US city to file for bankruptcy in recent years.
In 2012, three California cities - Stockton, Mammoth Lakes and San Bernardino - took the step.In 2012, three California cities - Stockton, Mammoth Lakes and San Bernardino - took the step.
But Thursday's move in Detroit is significantly larger than any of the earlier filings.But Thursday's move in Detroit is significantly larger than any of the earlier filings.
Send your pictures and videos to yourpics@bbc.co.uk or text them to 61124 (UK) or +44 7624 800 100 (International). If you have a large file you can upload here.
Read the terms and conditions