Saturday, July 11, 2009

Detroit Public School System may declare bankruptcy


Detroit -- Faced with a massive, multiyear deficit, Detroit Public Schools took another step Thursday in consideration of bankruptcy to help alleviate the district's financial woes.

Emergency Financial Manager Robert Bobb met with retired U.S. Bankruptcy Judge Ray Reynolds Graves at the district's offices in the Fisher Building for a "deep and in-depth discussion" on Chapter 9 bankruptcy.

"It's a sad day when we have ... to even consider the option of bankruptcy for the Detroit Public School system," Bobb said after the meeting. "We've had seven consecutive years of overspending and that's not insignificant.