Breaking Finance News

BREAKING- Detroit Will Likely File for Bankruptcy Friday

According to breaking news, Detroit will file for bankruptcy as soon as Friday.

The city of Detroit, Michigan, long known as the automobile capital of the nation and once a premier music city, is within days of announcing bankruptcy and new reports say it might happen Friday.

The bankruptcy comes as a result of the city’s emergency manager, Kevyn Orr, failing to reach deals with pension funds, bond holders, and other creditors to restructure the city’s debt. The city had planned to pay secured creditors the majority of what was owed but offer pennies on the dollar to unsecured unions, bondholders, and pension funds.

On top of the city’s financial worries, it is locked in a scandal where former City Council President, Charles Pugh, disappeared after being accused of having an inappropriate relationship with a recent high school graduate. The new City Council President ordered an audit of all accounts under Pugh’s control. This, according to one report, could be as high as $2.26 million.

 

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