1. Broke

    Detroit Begs Creditors for Help

    Materials are carted to a meeting of creditor representatives during a meeting with Detroit's emergency manager Kevyn Orr in Romulus, Mich., Friday, June 14, 2013. Orr says the city is defaulting on about $2.5 billion of debt. Orr said that Detroit is asking creditors to take about 10 cents on the dollar of what they're owed. Underfunded pension claims will get less. (AP Photo/Paul Sancya)

    Paul Sancya/AP

    On Friday, Detroit's emergency manager, Kevyn Orr, began negotiations that will determine whether the city ends up in bankruptcy court. His first action? Asking some of its creditors to accept as little as 10 cents on the dollar. It's all part of a master plan to save the city's finances, including the halting of some of the city's debt payments. Deep cuts alone can no longer save the city, Orr told creditors. He believes the odds of Detroit becoming the largest municipality to file for Chapter 9 bankruptcy protection are 50-50. But if Orr is right, the master plan—which proposes to spend $1.25 billion investing in city services and infrastructure over the next 10 years—might save the city after all.

    Read it at The New York Times