Bankruptcy

In 1985, Joe Sbarro declared that he had high hopes for his cafeteria-style pizza chain, founded in 1956.

"Sbarro's dream is to be another McDonald's," he told Newsday.

A U.S. bankruptcy judge on Thursday indicated that he's leaning in favor of a allowing American Airlines to emerge from bankruptcy, clearing a major obstacle to the carrier's planned merger with US Airways.

Judge Sean H. Lane said he is "finding the arguments in favor of confirmation fairly persuasive" to allow American, which filed for Chapter 11 in November 2011, to emerge from bankruptcy.

U.S. Bankruptcy Judge Allan Gropper has approved Kodak's plan to emerge from court oversight. That paves the way for it to be a much smaller company focused on commercial and packaging printing.

The plan received the judge's approval on Tuesday, and the company hopes to put it into effect as soon as Sept. 3, reports Kate O'Connell of member station WXXI in Rochester, N.Y.

The debt-laden city of Detroit has been an incubator for new strategies in urban revitalization, including a downtown People Mover, casinos, urban farms, artist colonies and large scale down-sizing.

In the wake of the city's bankruptcy, many in the community are thinking small.

Just outside of downtown Detroit is a neighborhood called Midtown. Like many hip, urban neighborhoods, it's got hipsters on fixed geared bikes, yoga studios, boutiques for dogs.

Detroit's emergency manager, Kevyn Orr, defended his decision to take the city into bankruptcy. The most contentious issue regarding the city is what bankruptcy protection could mean for the pensions of some retired city workers.

In a blunt interview with All Things Considered's Robert Siegel, Orr said that saying retirees will receive no money is false.

"We're just talking about adjusting them to today's realities," said Orr.

Michigan Gov. Rick Snyder says he's not expecting the federal government to offer a bailout for bankrupt Detroit and doesn't think it would be a good idea anyway.

Speaking on CBS' Face the Nation on Sunday, Snyder said of a Washington bailout of the Motor City: "I don't expect one."

Few Detroiters think the largest municipal bankruptcy in U.S. history is great news.

But plenty see it as an opportunity. Many Detroit business owners hope the bankruptcy will mean more stability and certainty, in a city that has had little of either in recent years.

Sandy Baruah, head of the Detroit Regional Chamber, says the bankruptcy filing did not come as a surprise to him, nor should it surprise anybody else.

A circuit court judge has ruled that Detroit's bankruptcy filing violates the state's constitution and laws, and must be withdrawn; Michigan's attorney general has already appealed the decision.

Judge Rosemarie Aquilina made the ruling on Friday, a day after the city became the largest municipality in history to declare bankruptcy under federal Chapter 9 rules.

With its bankruptcy filing Thursday, Detroit became the largest municipality in the United States to seek Chapter 9 protection.

As Scott reported, the city is saddled with $18.5 billion in debt.

Today, we ask, what happens next?

Leaders in Harrisburg, Pa., hope the legends of the Wild West will ride to the rescue of the cash-strapped state capital. Thanks to a former mayor's eccentric, failed museum project, the city has an extensive collection of Wild West artifacts — some said to have ties to people like Wyatt Earp, Doc Holliday and Buffalo Bill.

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