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Detroit, once powerhouse of American industry, has filed for bankruptcy. It has gone bust, to become biggest city to declare insolvency in U.S. history. Detroit's emergency financial manager Kevyn Orr said city could no longer afford to pay its bills, and was whopping $20 billion in debt. He has requested court's help in restructuring city finances to enable it to continue to function. He named over 100,000 creditors, including city's major pension funds and its 10,000 plus public employees. Detroit's pension system is underfunded by over $3.5 billion, leaving many current and past police officers, firefighters and public service workers with big question marks over their future.

Half century ago, Detroit was held up as gleaming example of American enterprise. Its extensive automobile industry earned it nickname "Motor City". However, once-thriving middle-class city has degenerated into sprawl of run-down suburbs with abandoned, boarded-up houses and high unemployment. car factories that spawned its success have all but disappeared. city said essential services would continue, but street lighting had been cut off. city mayor explained: "Detroit simply was not on sustainable footing, continuing to borrow, continuing to defer pension payments, continuing not to pay its bills on time - continuing deepening insolvency."