July 19, 2013 in Nation/World

Background

 

• For decades, Detroit paid its bills by borrowing money while struggling to provide the most basic of services for its residents.

• The city was about to default on a good chunk of its $14 billion-plus debt but now will get a second chance in a federal bankruptcy court-led restructuring.

• Detroit’s budget deficit this year is estimated at $380 million.

• The move leaves creditors with pennies on the dollar and places in jeopardy the pension benefits of thousands of city retirees


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