On July 18, 2013 the City of Detroit filed for Chapter 9* bankruptcy. It is the largest municipal default in the history of the United States.
A once robust population of 1.8 million people has fallen to a dispirited population of 700,000. The city’s infrastructure is collapsing: half the city streets lie in darkness from streetlights in disrepair; police emergency response is unpredictable and untimely; thousands of vacant lots and deserted buildings sit in silent despair.
Eight cities, including Washington, Cincinnati and San Francisco are currently on the edge of bankruptcy.
What can done? What has to change?
Join us at Einstein’s Circle on Wednesday when we listen to the experts, talk about the cause, and contemplate the future of big cities in America.
For more information, visit our event page.
*Chapter 9 bankruptcy is a lesser known chapter of bankruptcy that is specifically designed for “municipalities.” It is a filing of last resort that is not easily approved by a Bankruptcy Court. Detroit owes $9.2 billion in pensions, $1.9 billion to creditors and is $18.5 billion in debt. Chapter 9 allows the reorganization of debt by extending the timeline on repaying debts, debt refinancing, or the reduction of principal or interest on existing debts. The assets of a municipality are not liquidated under Chapter 9.