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As predicted months in March 2013 by Independent Underground News & Talk, the City of Detroit, Michigan and its' Emergency Manager Kevyn Orr has declared America's Auto Capital of the World, Bankrupt.
Orr provided a document (Recommendation Pursuant to Section 18(1) ofPA 436) to State Treasurer Andy Dillon and to Governor Rick Snyder:
"Orr's letter of recommendation for bankruptcy begins with this explanation:
Since my appointment as Emergency Manager, I have endeavored to keep you, informed of all of my activities to address the financial emergency faced by the City.
In addition to providing the reports required by PA 436, I have maintained open lines of communication with both of your and the members of your staffs relating to the progress of my restructuring efforts and the challenges I have faced in that process.
I believe that both of you have been well informed of the City's financial condition and its restructuring activities and negotiations that have been presumed to date, including those efforts that began before my appointment.
Nevertheless, to support my recommendation, this letter:
(a) provides a brief background on the dire situation faced by the City;
(b) summarizes certain of the efforts taken to date to rectify the City's financial emergency;
and (c) concludes by discussing the need for Chapter 9.
Based on the current facts and circumstances, I have concluded that no reasonable alternative to rectifying the City's financial emergency exists other than the confirmation of a plan of adjustment for the City's debts pursuant to Chapter 9 of the Bankruptcy Code because the City can adopt a feasible financial plan that can satisfactorily rectify the financial emergency outside of a chapter 9 process in a timely matter.
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