They haven't gone Chapter 11 yet, but the state of Michigan is now poised to intervene with an emergency manager for Detroit with bankrupcy-judge level powers to scrap contracts. That's a huge political hot potato, since Gov. Snyder is a moderate Republican and Detroit is very Democratic. Unions are already smarting over legislation allowing workers to not belong to unions ("right-to-work") passed in December, and this development will futher lessen the clout of public-sector workers in Detroit.
Motown is $14 billion in the hole on its long-term liabilities. That's $20,000 per person. Were the city to take out a 30-year project to pay that off, it would $1157 per person per year to pay that off at 4% interest.
Some sort of managed bankruptcy seems to be the primary solution. The prospect of deincorperating Detroit and letting Wayne County run the city has been bantied about. Selling off city assets has been on the table as well, but the city council was not thrilled with the idea of turning Belle Isle into a state park in return for a nice piece of cash from the state.
You'll have Democratic-Republican fights with the race card played like the ace of trump early and often. However, that might actually help Gov. Snyder with outstate voters and do little to damage the non-factor Republicans are in Detroit proper.