19 July 2013 Last updated at 15:46 ET
A judge in the US state of Michigan has ordered the withdrawal of a federal bankruptcy petition filed for the city of Detroit on Thursday.
Judge Rosemarie Aquilina said the petition violated the state constitution and law.
Earlier, Governor Rick Snyder said the move towards bankruptcy would reverse decades of decay.
Detroit, the birthplace of the US car industry, has racked up debts of $18bn (£12bn) over several decades.
Source: BBC News - Business http://www.bbc.co.uk/news/world-us-canada-23381456#sa-ns_mchannel=rss&ns_source=PublicRSS20-sa
