DETROIT - 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 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.
During the news conference, Governor Snyder told reporters that filing bankruptcy was a necessity.
“It’s time to move forward. It’s time to get Detroit stabilized and grow,” said Snyder. “Now’s the opportunity to stop 60 years of decline,” he said.
Orr has said the city of about 700,000 people will continue to pay its bills and employees.
Orr says the bankruptcy will give Detroit breathing room and power to negotiate - as well as free up much needed cash.
The bankruptcy filing was announced Thursday afternoon.
Detroit's deficit is $18 billion dollars, $11 billion is unsecured including the pensions and retiree health care for 30,000 Detroit City employees.
Orr is a bankruptcy attorney who resigned from The Jones Day Law Firm in March to become Emergency Manager. Governor Rick Snyder had said he does not like the bankruptcy option but it is a tool to get Detroit back on track.
Copyright 2013 Scripps Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.