Detroit filed the largest municipal bankruptcy in US history on Thursday to seek relief for an estimated $18.5 billion in debt that has crippled the city that was once the hub of American manufacturing.
The bankruptcy, if approved would force Detroit's thousands of creditors into negotiations to resolve an estimated $18.5 billion.
Less than 24 hours after Detroit filed the largest municipal bankruptcy in US history, the two men behind the historic action -- Michigan Governor Rick Snyder and Detroit Emergency Manager Kevyn Orr -- defended the move in an interview with Reuters.
Retirees and labour officials acknowledged that the city's finances were in a shambles and they would have to share in the sacrifice to help Detroit recover.
The ruling by US Judge Steven Rhodes, who cited the city's dismal finances and $18 billion owed to a multitude of creditors in support of his decision, marks a watershed in the history of Detroit.
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