Detroit will emerge from insolvency proceedings after U.S. Bankruptcy Judge Steven Rhodes approved its Chapter 9 bankruptcy today as fair and feasible, the Detroit Free Press reports. The plan will give the city the authority to cut 74 percent, or $7 billion, in unsecured debt and reinvest $1.4 billion over 10 years in public services and blight removal. Pensioners will have 4.5 percent cuts to their checks and the elimination of cost-of-living increases.
Detroit's bankruptcy is the largest municipal insolvency in Ameircan history.
Lawyer and Legal Journalist
