UPDATE: Snyder Says Detroit Bankruptcy Only Option

By: Associated Press
By: Associated Press
Michigan governor defends Detroit bankruptcy filing

Kevyn Orr, left, speaks as as Michigan Gov. Rick Snyder listens during a news conference in Detroit, Thursday, March 14, 2013. Snyder announced Thursday that he had chosen Orr, a partner in the Cleveland-based law and restructuring Jones Day firm, as Detroit's emergency manager. Snyder's already declared a financial emergency in Detroit, saying local officials lacked a plan to solve it. (AP Photo/Paul Sancya)

DETROIT (AP) -- Michigan Gov. Rick Snyder says bankruptcy is the only "viable option" if Detroit wants to prosper.

Snyder agreed with Detroit emergency manager Kevyn Orr and authorized the filing Thursday. Snyder and Orr will talk to reporters Friday at 10 a.m.

The filing means billions in debt will be resolved under the eye of a bankruptcy judge. Detroit has more than $18 billion in debt and other liabilities and doesn't take in enough revenue to cover them.

Snyder says Detroit is insolvent and has been borrowing money to pay bills for nearly a decade. The governor says Michigan needs its largest city to be healthy.

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