Detroit emergency manager says city ‘clearly insolvent’

(Reuters) – Detroit is clearly insolvent and could face a possible bankruptcy if talks with labor unions and creditors do not make substantial progress on easing the city’s cash crunch, the city’s emergency financial manager said on Monday. In his first official report, Emergency Financial Manager Kevyn Orr presented a grim view of Detroit’s problems. The city faces a $162 million cash shortfall because of pension deals that outstrip its ability to pay, and a $60 million operating deficit, all amidst a cityscape of abandoned homes and businesses, broken streetlights and fractured services, the report said….more

 

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