Federal Judge Approves Detroit Bankruptcy Plan

A federal judge today approved a plan to end Detroit's Chapter 9 bankruptcy. According to the Detroit Free Press, Judge Steven Rhodes ruled that Detroit's comprehensive restructuring plan is fair and feasible and allows for the city to slash more than $7 billion in unsecured liabilities and reinvest $1.4 billion over the next ten years in public services and blight removal. Rhodes' decision will allow the city to cut about 75% of its debt which will free up the cash to invest in services.

Michigan Governor Rick Snyder released a statement saying "this day marks the end of the nation's largest municipal bankruptcy, resolved quickly and successfully as a result of cooperation, compromise and a shared vision from many parties. And it offers hope to hundreds of thousands residents who cal Detroit home." He added "Detroit's journey is far from over. But there is no mistaking that Michigan's largest city os stronger. It's brightest days are to come."