So it’s official: Detroit’s come up with a viable plan to pull itself partway out of debt, following a long and convoluted bankruptcy trial. From Reuters:
The federal judge who approved Detroit’s plan for exiting the biggest-ever U.S. municipal bankruptcy gave the city on Wednesday the go-ahead for putting the plan in motion.
“The city needs to begin implementing this plan immediately,” U.S. Bankruptcy Judge Steven Rhodes said at a hearing.
The decision came following Rhodes’ decision on Friday that Detroit’s plan to cut its $18bn debt to a mere $11bn was fair to creditors and, more importantly, could actually work. Today, Rhodes ruled that the normal 14-day wait period before putting the plan into action could be waived.