The court affirmed the bankruptcy of the American city
U.S. court decided the fate of Detroit after four months of uncertainty. The case on the financial failure of the city was started 18 of July 2013. To date the debt is $ 18.5 billion, Detroit is the largest city-bankrupt in the U.S., USA Today informs.
Judge Steven Rhodes said that the city will not be able to repay the debt, despite lengthy negotiations with creditors. However, the official said that Detroit has an opportunity to review its policies and break new ground. In the near future, Detroit’s authorities have to make proposals for debt restructuring and change management policy of the city, including reducing pensions and benefits.
City crisis head Kevin Orr plans to provide the plan in several weeks. He hopes to overcome the crisis in September 2014. The plan will include proposals to improve the financial condition of Detroit and living conditions for 700 thousand inhabitants. The Government intends to cease cooperation with unreliable lenders to sell some of the assets, including those that can bring additional revenue in the water supply and sanitation, and possibly sell the Detroit Institute of Arts.
