The state-led attempts to restructure the city’s debt outside of court have failed, and Governor Rick Snyder says the move was “difficult” and “painful,” but there was no other “viable option.”
Detroit has struggled with corruption and residents leaving the city with their tax dollars, and is $18 billion in debt. Just recently, it was unable to make a $40 million payment to its pension system. And the bankruptcy filing will most likely lead to a battle with 43 public sector unions facing a drastic cut in pensions.
As once the legendary Motor City and music mecca, Detroit may be forced to sell off cultural assets to pay down its debts.