Judge declares Detroit bankrupt, calls for 'fresh start'

(France24) A federal judge on Tuesday formally declared the US city of Detroit bankrupt in a landmark ruling that clears the way for potentially sweeping cuts to city worker pensions and retirement benefits and for steep losses to the city's bond holders.

The US city of Detroit won judicial approval to move forward with the largest municipal bankruptcy in the country's history on Tuesday, despite objections from city workers fearful of losing their pensions.

Saddled with more than $18 billion in debt and a tax base depleted by decades of population loss and urban blight, the city has been so strapped for cash it can't even keep the street lights on.


Once known as the cradle of the US auto industry, the arsenal of democracy and the birthplace of Motown music, Detroit can now claim an ignominious new title: largest bankrupt city in US History.

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