DETROIT (CBS Detroit) Happening slowly — and then all at once — many were caught off-guard when Detroit suddenly filed for bankruptcy Thursday without fanfare and with no word from the city or state.
That happens Friday.
Michigan Gov. Rick Snyder said he and emergency manager Kevyn Orr will speak at a joint press conference at 10 a.m. Friday in Detroit to discuss the filing — the largest of its kind in history. Snyder said bankruptcy is the only way for the city to emerge from its crippling $18 billion debt.
See the entire court filing HERE: Detroit Bankruptcy Filing
The governor added 38 cents of every city dollar goes toward debt repayment, legacy costs and other obligations. By 2017 that figure is expected to reach 65 cents per dollar.
“The simple fact is Detroit is in a financial crisis. The city is insolvent and has been borrowing money to pay its bills for nearly a decade. Bankruptcy is the only feasible option to fix the city’s finances and do what is right for the 700,000 people of Detroit,” Snyder said.
Also at the press conference will be Detroit Regional Chamber President and CEO Sandy K. Baruah, Larry Alexander, President and CEO, Detroit Metro Convention and Visitors Bureau; Brian Holdwick, executive vice president of business development for the Detroit Economic Growth Corporation; and Joseph Welch, chairman, president and CEO, ITC Holdings Corp.
Baruah is a fan of the bankruptcy filing, calling it a “bold step needed to finally address Detroit’s financial problems in a meaningful and sustainable way.”
“This decision puts the city on a path to achieve its most essential function – providing Detroiters the services they deserve – and sets the stage for a growing, vibrant Detroit.”