By Michael Lotfi,
The largest municipal bankruptcy in history was just allowed to move forward. US Bankruptcy Judge Steve Rhodes delivered the ruling, which declared the city could move forward with its plans for Chapter 9 bankruptcy. Judge Rhodes ruled that objectors must appeal directly to the 6th Circuit and file separate motions. According to Judge Rhodes, “This situation has proved unworkable.” The struggling city is more than $18 billion in debt. The Detroit Free Press is updating live from the courthouse.
According to exiting Detroit Mayor Bing, “There’s going to be a lot of pain for a lot of different people. But in the long run, the future will be bright.” Last Summer the city first filed for bankruptcy after struggling for years to make payments to debtors. The city made headlines for pushing through plans to construct a new $444 million hockey arena for the Detroit Red Wings with taxpayer money.
Last election cycle, President Obama praised Detroit and stated that because of his policies the city wouldn’t go bankrupt. “We refused to let Detroit go bankrupt. We bet on American workers and American ingenuity, and three years later, that bet is paying off in a big way,” President Obama said in a weekly address.