15 Facts About Detroit bankruptcy

Detroit's bankruptcy filing followed a declaration of financial emergency in March 2013 that resulted in Kevyn Orr being appointed as "emergency manager" of the city by Michigan Governor Rick Snyder.

The report stated that Detroit bankruptcy is "clearly insolvent on a cash flow basis" and that the city would finish its current fiscal year with a US$162 million cash-flow shortfall.

Revenue fell due to Detroit bankruptcy's declining population, which reduced the property and income tax base.

Contributions of city revenue and expenses to the cash-flow shortfall help explain the immediate causes of Detroit's bankruptcy filing, but Detroit's complex history provides greater context for the city's financial problems.

The decline of population and employment opportunities in Detroit had been going on for decades prior to the bankruptcy filing.

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In June 2013, the government of Detroit bankruptcy stopped making payments on some of its unsecured debts, including pension obligations.

Detroit bankruptcy's debts included $369 million in unlimited general obligation bonds, bonds issued with the general backing of taxpayers, described by Florida bond finance director Ben Watkins as "[having] been the gold standard of the municipal-bond market".

Rhodes declared early consideration of the purely legal issues, such as Detroit's authorization under state law for the bankruptcy filing, would expedite determination of eligibility under the Bankruptcy Code.

The judge declined to find that the city had negotiated in good faith with creditors pre-Detroit bankruptcy, based on the testimony at the eligibility trial; he noted that the meetings the city held with creditors leading up to the Detroit bankruptcy filing did not meet the statutory good-faith requirement.

Detroit bankruptcy indicated that he would consider permission for an appeal to proceed directly to the U S Court of Appeals for the Sixth Circuit, rather than the regular route of an appeal first to the federal district court, in a separate motion.

Detroit's teachers' union will appeal the bankruptcy ruling according to Randi Weingarten, national president of the American Federation of Teachers.

One of the biggest issues facing litigators of Detroit's bankruptcy was which assets belong to the city outright and those that were available to creditors in order to satisfy liabilities.

Chief Judge for the Eastern District Michigan Gerald Rosen, who had taken on the role of chief mediator, and Rhodes sought a quick end to the Detroit bankruptcy fearing a process that could take years to resolve.

Detroit bankruptcy would reach deals with more of its creditors throughout the fall.

Still, it has been less than a decade since Detroit emerged from bankruptcy on paper, and many of these problems have roots beyond the bankruptcy.