Yesterday Detroit City was granted eligibility for bankruptcy by a Federal Judge. This makes it the largest municipal bankruptcy in US history.
The ruling means the city can move forward with debt-cutting under a ‘Plan of Adjustment’ to be decided by the end of the year.
This will be a contentious but necessary phase in Detroit’s recovery: creditors, and even pensioners, will receive far less than they are owed, but the city will be able to put decades of financial difficulties behind it.
Yesterday was a crucial step towards improving municipal services in the city and increasing local living standards. Residents and businesses alike should welcome the news as the start of a new era of development for Detroit.