Detroit Exits Bankruptcy, Thanks to Its Art Museum

This post is part of our press review.

A federal judge approved Detroit’s bankruptcy plan today, allowing the city government to hit the reset button after its years of financial mismanagement. As part of the deal, which took a relatively speedy 16 months to complete, the city is eliminating $7 billion worth of debt—some creditors will be paid just 14 cents on the dollar—while slicing pension payments to its retired workforce by 4.5 percent (and ending their cost of living increases, and upping their health plan costs, and … you get the idea, it’s unpleasant). Meanwhile, the blueprint sets aside $1.7 billion over the next decade to cover critical needs, like demolishing abandoned homes and buying new fire trucks and ambulances.

Read more

Related Posts

Leave A Comment