It's A Big Day for Detroit: Federal Judge Rhodes OKs Detroit's Bankruptcy Exit Plan

On July 18, 2013, Detroit filed for Chapter 9 Bankruptcy.  Detroit is the largest city in the United States to seek relief from its crushing debts in bankruptcy.

Eric and I visited Detroit in August 2014.  It was easy to document the city's decline.

Michigan Central Station

stands abandoned.

We drove through neighborhoods
that been vacated.

Thousands of homes have

been torn down, leaving

urban meadows.

I was intrigued by the painful fall of one of our nation's largest economic engines, so I started to follow Detroit's progress towards financial viability.

Last week, a major step forward
was taken when Federal Judge
Rhodes approved Detroit's
Bankruptcy Exit Plan.






Judge Rhodes found Detroit's complex financial restructuring is legally reasonable, fair and equitable to to the city's thousands of creditors.  Restructuring debts included saving the artworks in the Detroit Institute of Arts from auction and the Michigan State Legislature approved a financial assistance package for Detroit.

The stroke of the judge's pen doesn't give  Detroit financial independence.  For the next twelve years a new financial oversight board will monitor the city's finances.

I hope for the best as I continue to monitor news from Detroit.