Detroit Gets OK to Exit Bankruptcy

On Friday, a judge in Detroit approved a plan for the city to shed $7 billion in debt and restructure its finances after it filed for bankruptcy last year. U.S. Bankruptcy Judge Steven Rhodes approved the plan that includes cuts to retiree pensions. “This will cause real hardship and, in some cases, it is severe,” Rhodes said. “This bankruptcy, however, like most, is about shared sacrifice that is necessary because the city is insolvent and desperately needs to fix its future.” The so-called “grand bargain” will require state legislation and includes $195 million from the state and $466 million from foundations, corporations, and private donors.