Snyder: Detroit creditors worry they won't be paid

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Associated Press

DETROIT (AP) - Michigan Gov. Rick Snyder says some Detroit creditors are not sure they will be repaid.
   
Snyder was speaking Friday, a day after Emergency Financial Manager Kevyn Orr made Detroit had become the biggest ever U.S. city to file for bankruptcy.
   
Snyder determined earlier this year that the city was in a financial emergency and without a plan for improvement. The state hired bankruptcy expert Orr to stop Detroit's fiscal free-fall.
   
Orr has said the city of about 700,000 people will continue to pay its bills and employees.

Earlier story:

DETROIT (AP) - Detroit's decades-long fall from industrial powerhouse to financial ruin was the result of a long, slow decline in population and auto manufacturing.
   
Thursday's bankruptcy filing by the one-time irrepressible engine of the American economy had been feared for months, but much about the city's path forward remains uncertain.
   
Bankruptcy could mean laying off employees, selling off assets, raising fees and scaling back basic services such as trash collection and snow plowing, which have already been slashed.
   
Now city and state leaders must confront the challenge of rebuilding Detroit's broken budget in as little as a year.

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