Detroit Exits Largest Municipal Bankruptcy In US History

[Purveyor]

Source: Al Jazeera English

December 10, 2014 1:45PM ET

Detroit is formally exiting bankruptcy, marking the end of largest municipal bankruptcy in U.S. history, Michigan Gov. Rick Snyder announced Wednesday.

Snyder said during a news conference that the city's bankruptcy would officially end just after midnight, after the expected approval of paperwork on Wednesday. He thanked the city's emergency manager, Kevyn Orr, who implemented a two-year budget to eliminate $7 billion in the city's debt.

"We look forward, truly, to a better time for the city going forward," said Orr, who was hired by Snyder last year to take over the city's finances. "More importantly, it's time for me now to step back and return the city to its regular order."

Snyder and Orr, the attorney who handled automaker Chrysler's Chapter 11 filing, took Detroit into bankruptcy in July 2013 in a last-ditch effort to reorganize city finances after decades of population loss, declining tax revenue and growing debt.

Read more: http://america.aljazeera.com/articles/2014/12/10/detroit-bankruptcyexit.html

[sakabatou]

1. So, will Orr step down now that Detroit is out of the hole?

[Purveyor]

2. Yes, by midnight tonight according to USA Today...

DETROIT — The city of Detroit's historic Chapter 9 bankruptcy will end Wednesday, setting in motion a sweeping plan to slash $7 billion in debt and reinvest $1.4 billion over 10 years to improve city services.

Detroit emergency manager Kevyn Orr told reporters that the final paperwork required to allowed the city to emerge from bankruptcy will be completed by the end of the day.

Judge Steven Rhodes approved the city's restructuring plan in November, giving the city the authority to implement the grand bargain to help reduce pension cuts, preserve the Detroit Institute of Arts and start improving basic services.

The end of the bankruptcy also marks the end of Orr's tenure. His resignation will take effect when the city emerges from bankruptcy by midnight.

more...

http://www.usatoday.com/story/news/nation/2014/12/10/detroit-bankruptcy-exit/20192289/