The republican-appointed city manager of Detroit is applying for permission to apply for bankruptcy and sell off civic assets to satisfy the declining “Motor City’s” debts estimated to be A$16  - A$21 Billion.  

State-appointed emergency manager Kevyn Orr asked a federal judge to place the city into bankruptcy protection.  If approved, he would be allowed to liquidate city assets to satisfy creditors and pensions.

Detroit stopped unsecured-debt payments last month to keep the city running as Orr negotiated with creditors, offering them 10 cents on the dollar for what they are owed.

The move carries racial implications, setting off fears the mostly-white, conservative-led state government was trying to seize control of Detroit, a Democratic-held city where more than 80 percent of residents are black.