Flint, Michigan emergency manager says the city may file for bankruptcy
The following is quoted from an op-ed by Flint emergency manager Darnell Earley.
http://www.mlive.com/opinion/flint/index.ssf/2014/01/guest_view_of_darnell_earley.html#incart_river_default
We have done everything possible to avoid becoming insolvent. Resolving insolvency could include a potential filing for bankruptcy, as authorized under for cities in state receivership under Public Act 436. As is evident from the city of Detroit’s experience, pursuing bankruptcy allows consideration of severely reducing or eliminating health care coverage for retirees, and allows consideration for reducing pensions. Since retirees are far and away the largest creditors to the city of Flint, it is likely that a bankruptcy proceeding would consider substantial modification of both healthcare and pension benefits. It is not a path we wish to take.
