Detroit (US), Jul 20 : Detroit’s bankruptcy was challenged in court by government workers fighting to protect their retirement benefits as Michigan’s governor insisted it is the only way for Motown to survive.
A county judge ordered that the proceedings be halted because it violates the US state’s constitution, but it’s not clear how much weight that would carry in federal bankruptcy court. The order was immediately appealed by Michigan’s attorney general yesterday.
Saddled with more than USD 18 billion in debt and a shrunken tax base, the birthplace of the US auto industry has been so strapped for cash it can’t even keep the streetlights on. (AFP)