Nick's Feed
Jul 23, 2013

Despite mutual dislike, Michigan may need Detroit

DETROIT (Reuters) – Defending his decision to approve America’s largest ever bankruptcy filing in Detroit last week, Rick Snyder returned to a point that he has been hitting on since his successful run for governor in 2010: for Michigan to thrive, Detroit must prosper.

“We’re the comeback state in Michigan, but to be a great state we need…Detroit on the path to being a great city again,” the Republican governor said at a press conference on Friday.

Jul 22, 2013

Bankrupt Detroit’s downtown renaissance creates trickle of hope

DETROIT, July 22 (Reuters) – Detroit’s bankruptcy filing
last Thursday – the largest in American municipal history -
completed a six-decade slide for a one-time industrial
powerhouse. Today the city bears an uncomfortable resemblance to
a failed state: unable to light or police the streets, educate
children, stop arson, or provide emergency care to the dying.

There is, however, a mini-renaissance occurring in the
downtown core. It is here that Detroit might just be carving out
a new identity, this one driven not by cars but by computers.
The Internet-focused businesses springing up have attracted
thousands of young, well-educated, tech-savvy “urban pioneers.”

Jul 19, 2013

Detroit bonds drop, judge seeks to halt bankruptcy filing

DETROIT, July 19 (Reuters) – Investors dumped Detroit’s
municipal bonds a day after the city’s historic bankruptcy
filing even as a ruling in state court raised questions about
whether the bankruptcy will stand up to court review.

Attempts by Michigan Governor Rick Snyder and Detroit’s
Emergency Manager Kevyn Orr to put a positive spin on the filing
failed to reassure investors. Prices on some Detroit bonds
plunged and there were wider declines in the $3.7 trillion U.S.
municipal bond market.

Jul 19, 2013

Detroit faces long road through bankruptcy, officials say

DETROIT, July 19 (Reuters) – Michigan Governor Ricky Snyder
and Detroit’s emergency manager Kevyn Orr sought on Friday to
assuage residents’ concerns over the city’s bankruptcy
proceedings while acknowledging that a lengthy court battle
awaits.

“We’re the comeback state in Michigan, but to be a great
state we need Detroit on the path to being a great city again,”
Snyder, a Republican, said at a press conference.

Jul 19, 2013

Detroit files for largest-ever bankruptcy in U.S. history

DETROIT (Reuters) – Detroit filed the largest municipal bankruptcy in U.S. history on Thursday, setting the stage for a costly court battle with creditors and opening a new chapter in the long struggle to revive the city that was the cradle of the American auto industry.

The bankruptcy, if approved by a federal judge, would force Detroit’s thousands of creditors into negotiations with the city’s Emergency Manager Kevyn Orr to resolve an estimated $18.5 billion in debt that has crippled Michigan’s largest city.

Jul 18, 2013

Detroit files for bankruptcy, stage set for court fight

DETROIT, July 18 (Reuters) – Detroit filed the largest-ever
municipal bankruptcy in U.S. history on Thursday, marking a new
low for a city that was the cradle of the U.S. automotive
industry and setting the stage for a costly court battle with
creditors.

In a letter accompanying the filing, Michigan’s Governor
Rick Snyder said he had approved a request from Detroit
Emergency Manager Kevyn Orr to file for Chapter 9 bankruptcy
protection noting, “Detroit simply cannot raise enough revenue
to meet its current obligations, and that is a situation that is
only projected to get worse absent a bankruptcy filing.”

Jul 18, 2013

Detroit files biggest-ever U.S. municipal bankruptcy

DETROIT, July 18 (Reuters) – The city of Detroit filed for
bankruptcy on Thursday, making it the largest-ever municipal
bankruptcy in U.S. history and marking a new low for a city that
was the cradle of the U.S. automotive industry.

In a letter accompanying the filing, Michigan’s Governor
Rick Snyder said he had approved a request from Detroit
Emergency Manager Kevyn Orr to file for Chapter 9 bankruptcy
protection saying “it is clear that the financial emergency in
Detroit cannot be successfully addressed outside of such a
filing, and it is the only reasonable alternative that is
available.”

Jul 18, 2013

Detroit may file for bankruptcy as early as Friday: report

DETROIT (Reuters) – The city of Detroit is in final preparations to file for federal bankruptcy as early as Friday morning, the Detroit Free Press reported on Thursday, citing several unnamed sources.

Bankruptcy lawyers and restructuring experts who are following Detroit’s financial struggles say the city’s hand may be forced by lawsuits filed in state court by municipal employees, retirees and pension funds that challenge its right to file for bankruptcy.

Jul 9, 2013

Its relevance reduced, Detroit council picks new leaders

By Nick Carey and Steve Neavling

(Reuters) – Detroit’s shrinking and largely powerless city council selected new leadership on Tuesday as some members insisted the body is still relevant despite an order from a state-appointed emergency manager that two vacant council seats be left empty.

“The council still has a very vital role to play in the city,” said newly chosen council President Saunteel Jenkins. “As elected representatives of the people of Detroit, it’s our responsibility that their voice be heard.”

Jul 3, 2013

Cheap Detroit homes are costly for communities, unwary buyers

DETROIT, July 3 (Reuters) – The solid red brick house on a
block of similar homes in Northwest Detroit sounds like a steal
at $3,728.

But in many ways, it’s a lemon.

The house, sold at an auction last fall, sits at the edge of
Detroit’s infamous urban blight. And scrap thieves, or
“strippers,” have taken anything of value, including the kitchen
sink and metal pipes, requiring repairs of up to $15,000.

    • About Nick

      "Nick Carey is a Chicago-based, British-born journalist who has covered everything from the near-collapse of the Big Three automakers to the U.S. housing crisis. Nick is currently on general assignment, reporting on the human impact of the recession. He previously spent ten years working in central and eastern Europe."
    • More from Nick

    • Follow Nick