Emergency manager: Detroit won't pay $2.5B it owes

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**Frazzled**

http://www.breitbart.com/system/wire/DA6TK8FO1

(AP) Emergency manager: Detroit won't pay $2.5B it owes
By COREY WILLIAMS
Associated Press
ROMULUS, Mich.
Detroit's emergency manager says the city is defaulting on about $2.5 billion of debt.

Kevyn Orr said Friday that Detroit is asking creditors to take about 10 cents on the dollar of what they're owed. Underfunded pension claims will get less.

Orr spent about two hours Friday morning with dozens of people representing banks, insurers and companies holding Detroit debt. He told reporters earlier at an airport hotel in Romulus he wants to fix fiscal problems that have made the city insolvent.

He has instituted a moratorium on all of Detroit's payments on unsecured debt, seeking forgiveness of millions of dollars owed by the city.

He also said $1.25 billion will be set aside over 10 years for public safety, lighting and neighborhood blight elimination.

**Breotan**

I always suspected Detroit was a third world country. All we need now is the IMF to come in and bail them out.

**Lord of Deeds**

Breotan wrote:
I always suspected Detroit was a third world country. All we need now is the non-Detroit taxpayer to come in and bail them out.

FIFY

**MeanGreenStompa**

Perhaps the banks and creditors could return the money we taxpayers bailed their asses out with in 08, and then we could lend that money,with more favorable terms, to Detroit?

**Frazzled**

MeanGreenStompa wrote:
Perhaps the banks and creditors could return the money we taxpayers bailed their asses out with in 08, and then we could lend that money,with more favorable terms, to Detroit?

Banks-most did actually. The other ones don't exist any more.

**Dreadclaw69**

Should we have a show of hands for all those surprised?

**SilverMK2**

So what does this mean for the companies etc that are owed money? Will these kinds of transactions be insured or anything?

**whembly**

It's official... Detroit files for chapter 9 bankruptcy.
http://www.clickondetroit.com/money/detroit-files-for-chapter-9-municipal-bankruptcy/-/1719116/21019898/-/14iqaycz/-/index.html
Now they're past that hurdle... I really hope the aftermath puts them on solid footing from here on out.

**Dreadclaw69**

What are the next steps for Detroit then?

**Ahtman**

Breotan wrote:
I always suspected Detroit was a third world country. All we need now is OCP to come in and bail them out.

Fixed for even better accuracy.

Spoiler:

**Avatar 720**

Dreadclaw69 wrote:
What are the next steps for Detroit then?

Nuke from orbit then rebuild.

**Alfndrate**

Have Kid Rock just buy the city? He's already doing everything else he can to help save the city, why not own it?!

**Dreadclaw69**

Sell it to the Chinese. Then we can really start saying we're buying the new import from Detroit

**azazel the cat**

Dreadclaw69 wrote:What are the next steps for Detroit then?

Thunderdome?

**cincydooley**

MeanGreenStompa wrote:
Perhaps the banks and creditors could return the money we taxpayers bailed their asses out with in 08, and then we could lend that money,with more favorable terms, to Detroit?

You realize the only banks that haven't are the federally sponsored ones, right? Most paid them back within the fiscal year.

**Jihadin**

Thunderdome?

Come on Az....expand a bit more....Thunderdome and Death Race

**whembly**

Alfndrate wrote:
Have Kid Rock just buy the city? He's already doing everything else he can to help save the city, why not own it?!

He's touring right now...

He'll get to it.

(btw, he's touring with Uncle Kracker and ZZ Top

)

**SlaveToDorkness**

I'm thinking we wall it in and create a super-prison a la Escape from NY/LA.

**Alfndrate**

whembly wrote:
Alfndrate wrote:
Have Kid Rock just buy the city? He's already doing everything else he can to help save the city, why not own it?!

He's touring right now...

He'll get to it.

(btw, he's touring with Uncle Kracker and ZZ Top )

I know, he was in Cleveland 2 weeks ago... And he's doing 8, count them 8 sold out shows in Detroit... Like I said, the man is trying the best he can to bring money into the place.

**Ouze**

Hopefully they can use bankruptcy to re-organize. One thing I think they desperately need to do is move forward with their plans to blight & bulldoze a lot of those vacant homes - all those abandoned neighborhoods do nothing but breed crime, which feeds flight, which hastens the death spiral. I don't know how to deal with the rest of their problems, but this would help at least some.

I wonder if they're not eventually going to wind up under some sort of federal receivership; the problems here are too big for a single city to fix; hell, maybe too big for even the state.

**motyak**

SlaveToDorkness wrote:
I'm thinking we wall it in and create a super-prison a la Escape from NY/LA.

I was so close to suggesting this. Instant income for the city in terms of money from the government for taking the worst criminals and keeping them locked away, as well as extra cash from reality shows!

**whembly**

Ouze wrote:
Hopefully they can use bankruptcy to re-organize. One thing I think they desperately need to do is move forward with their plans to blight & bulldoze a lot of those vacant homes - all those abandoned neighborhoods do nothing but breed crime, which feeds flight, which hastens the death spiral. I don't know how to deal with the rest of their problems, but this would help at least some.

I wonder if they're not eventually going to wind up under some sort of federal receivership; the problems here are too big for a single city to fix; hell, maybe too big for even the state.

I thought St. Louis was bad... but, the following pictures? Holee gak... blight & bulldoze is desperately needed:
http://storify.com/MelissaTweets/detroit-s-demise-david-freddoso-documents-the-doom?utm_source=embed_header

**sebster**

Detroit - the only city in American history to surrender to a foreign power, and now the largest city to ever file for bankruptcy. Also a bit of a gak hole these days, judging from the pictures people keep sending me of their libraries.

Anyhow, Detroit can restructure its debt through the bankruptcy and it'll likely also force the city in to making some hard choices that'll move it back to long term financial stability. But I think the issue is that this isn't really the end of Detroit's problem. I think there's probably a pretty big question to be asked about exactly what the city offers to encourage jobs and growth long term. The car industry made the city very rich, but car manufacturing just isn't centralised like that any more. So what industry and activity can actually be brought to the city to provide jobs and give the city a decent revenue base. Anyone?

**whembly**

sebster wrote:
Detroit - the only city in American history to surrender to a foreign power, and now the largest city to ever file for bankruptcy. Also a bit of a gak hole these days, judging from the pictures people keep sending me of their libraries.

Anyhow, Detroit can restructure its debt through the bankruptcy and it'll likely also force the city in to making some hard choices that'll move it back to long term financial stability. But I think the issue is that this isn't really the end of Detroit's problem. I think there's probably a pretty big question to be asked about exactly what the city offers to encourage jobs and growth long term. The car industry made the city very rich, but car manufacturing just isn't centralised like that any more. So what industry and activity can actually be brought to the city to provide jobs and give the city a decent revenue base. Anyone?

Blight and Bulldose TM

And then what? Entice more manufacturing? Change the Union laws to make it more business friendly?

OH! I KNOW!

DISNEY LAND! That's what they need! A northern DisneyLand/World and move the Movie Productions there. It ought to be cheaper for sure than California/Florida.

**Jihadin**

They still have those close vehicle manufacture plants there right? Think instead of having all our MRAP's, MATV's, new Frag Eights. Possible ammo plant. Granted its military hardware gear but sliding a few manufacture plants there is cheaper then building one from the ground up. Also components for them.....wondering if anyone in the Pentagon/government picking up on that idea.

Isreal picked up a buttload of Frag Eights uparmor HUMVEE's from Afghanistan
South Korea looking into it (Frag Eights
Romanian government outright loves the MRAP and MATV and last I heard planning on extending their battalion to regiment size.
Poland inquiring about them.(MRAPS)
Germany might take a few Frag Eights...
UK looking at the Uparmor SF vehicles....Dune Buggies on steroids and speed
Couple Latin American country as interest in the Strykers.

88N pool is small so info pretty much passed along on our grape vine as heads up when we go into Afghanistan. Right now it seems we're trying to leave NOTHING.

**Jihadin**

Didn't some Rep there demanded Obama for help since they won the state for him or something silly?

edit
Not that I'm really concern. Couple years I be buying up property up there and commence the Caste System.....as I work on my Clan Widowmaker Assualt and Tactical Marines

**djones520**

I recall they just got something to the scale of 10 billion from the Fed Gov to slash and burn significant portions of the city that had been declared abandoned/condemned. It can definitely use it. There are portions of Detroit that aren't bad. Investment has gone into it, and it's nice. It's mostly along the river front though. Once you head inland across E. Jefferson Ave... well it's like entering a Mad Max movie.

My father grew up in Detroit. A couple of years ago we were there, and I had him take me through some of the area's he lived in. Let me tell you, I'd rather take a trip to Afghanistan then to do that again.

**Jayce_The_Ace**

Why not sell it to these the guys?

http://pawndetroit.com/

**Frazzled**

SlaveToDorkness wrote:
I'm thinking we wall it in and create a super-prison a la Escape from NY/LA.

Having been through Detroit in the last couple of weeks I don't get it. Wipe aout all the buildings and just let them return to forest. You could make that a beautiful city.

**notprop**

whembly wrote:
....

Based upon this, why as Detroit not spamming out Zombie and post-apocalyptic disaster movies at a rate of knots? I'm looking at these picture and thinking if they tidied some of thiose streets up it would be a perfect Fallout set.

BBC are reporting the actual final debt to be nearer $21bn. That's allot of 4th July parades!