Detroit, which was once the most developed city and an Industrial power of United States, has filed for bankruptcy with debts of at least 15 billion dollars.
With this, Detroit has become the largest city of US to file for bankruptcy in recent years.
The city is now seeking protection from creditors, who include public-sector workers and their pension funds.
Mayor Dave Bing however has said that public services will keep running and wages for public workers will be paid.
The move comes just days ahead of a hearing that would have tried to stop it.
Michigan state-appointed emergency manager Kevyn Orr asked a federal judge to place the city into bankruptcy protection. If it is approved, he would be allowed to liquidate city assets to satisfy creditors and pensions.
Orr suggested at the time there was a 50-50 chance of the city needing to file for bankruptcy, adding that the city's long-term debt could be between 17 billion dollars and 20 billion dollars.
Detroit has been renowned for motor factories. Besides General Motors, the city has been home of many industries. But now much of the houses in the city remain vacant as the population has declined in the recent years.
(with inputs from ANI)
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