By Harriet Alexander
July 19, 2013
The city of Detroit filed for bankruptcy on Thursday afternoon, ending weeks of speculation about a possible such move.
Kevyn Orr, the city’s emergency manager, handed over a 3,000 page document detailing all the money which the city is unable to pay.
The list of those owed includes the names of all of the city’s active employees and its retirees, a list of properties that have tax claims with the city, numerous bondholders, business creditors and companies that insured Detroit debt.
The largest creditor is the city’s general pension scheme, which is owed $2 billion.
A plan devised in June called for city-employed retirees to accept less than 10 per cent of what they were owed under pension plans. But earlier this week the city’s two pension funds sued Detroit’s state-appointed emergency manager in an attempt to stop the cuts in retirement pay. An insurance group also threatened legal action.