Reuters: Bankruptcy News: Detroit has negative cash flow, may run out of cash -report

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Detroit has negative cash flow, may run out of cash -report May 13th 2013, 12:31 Mon May 13, 2013 8:31am EDT May 13 (Reuters) - The city of Detroit is projecting to end the current budget year with negative cash flow of around $90 million, and the near-bankrupt city risks running out of cash, according to a new report by a state-appointed emergency manager. Bankruptcy attorney Kevyn Orr late on Sunday released his first report on Detroit's finances since he took the job in March, finding the city's expenditures have exceeded revenues from fiscal year 2008 to fiscal year 2012 by an average of $100 million per year. The city's fiscal year ends June 30. As of April 26, the City had cash on hand of $64 million but current obligations of $226 million. "Therefore, the city's net cash position was actually negative $162 million," the report said. "The city has been deferring, and will need to continue to defer, payments on its current obligations in order to avoid running out of cash."

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