Detroit Bankruptcy

Detroit will not recover, and it may not survive as a major city if its debts are not significantly reduced during bankruptcy, a city attorney told a federal judge at the start of a critical phase of the case on Tuesday.

The city of Detroit won judicial approval to move forward with its bankruptcy filing Tuesday despite objections from city workers fearful of losing their pensions and other creditors, local media reported.

Detroit on Friday wrapped up its effort to prove that it is eligible for the largest municipal bankruptcy in US history, clashing with unions, retirees and pension funds.

Thousands of pensioners already struggling to get by are afraid they will be pushed into poverty if the city of Detroit is able to slash their benefits in a bankruptcy court.

A showdown over the biggest municipal bankruptcy filing in US history begins in a federal court on Wednesday morning as creditors challenge its legality.

Blue-collar workers poured into the cavernous auto plants of Detroit for generations, confident that a sturdy back and strong work ethic would bring them a house, a car and economic security. It was a place where the American dream came true.

Michigan's governor said on Sunday he would not seek a US government bailout for Detroit, saying bankruptcy was a necessary path to rebuild the once great American auto city.

Detroit will not recover, and it may not survive as a major city if its debts are not significantly reduced during bankruptcy, a city attorney told a federal judge at the start of a critical phase of the case on Tuesday.

The city of Detroit won judicial approval to move forward with its bankruptcy filing Tuesday despite objections from city workers fearful of losing their pensions and other creditors, local media reported.

Detroit on Friday wrapped up its effort to prove that it is eligible for the largest municipal bankruptcy in US history, clashing with unions, retirees and pension funds.

Thousands of pensioners already struggling to get by are afraid they will be pushed into poverty if the city of Detroit is able to slash their benefits in a bankruptcy court.

A showdown over the biggest municipal bankruptcy filing in US history begins in a federal court on Wednesday morning as creditors challenge its legality.

Blue-collar workers poured into the cavernous auto plants of Detroit for generations, confident that a sturdy back and strong work ethic would bring them a house, a car and economic security. It was a place where the American dream came true.

Michigan's governor said on Sunday he would not seek a US government bailout for Detroit, saying bankruptcy was a necessary path to rebuild the once great American auto city.