UPDATE: Judge Steven Rhodes, as expected, has approved Detroit's historic plan to emerge from the nation’s largest municipal bankruptcy filing.
EARLIER: Monica Davey and Mary Williams Walsh report in The New York Times:
The acceptance of the proposal will end more than 15 months under court protection for this struggling city. It would allow Detroit, which had accumulated about $18 billion of debt before filing for reorganization in July 2013, to shed $7 billion in debt and to invest in long-neglected city services.
The exit plan sets aside $1.7 billion over a decade to remove blighted buildings, to buy fire trucks and ambulances, and to upgrade the city’s antiquated computer systems. Detroit has spent about $150 million on lawyers, experts and other bankruptcy costs, city officials say.
After many months of private mediation sessions, the city’s exit plan is more a deal than a court-imposed solution. In the end, it was largely agreed to by the major groups involved, including the city’s financial creditors and retired workers.
One important aspect of the deal was the so-called "grand bargain," which will reduce pension cuts and keep intact the DIA.
The grand bargain will allow the city to accept more than $800 million from nonprofit foundations, the State of Michigan and DIA donors. The museum will not have to sell any of its valuable artwork.
These are among the first reactions on Twitter:
Hey world... #ICYMI: Detroit. Is. Back!
— Lt Gov Brian Calley (@briancalley) November 7, 2014
A new day in Detroit! Time to build.Innovate.Create wealth & Jobs.There's never been more opportunity.Full statement: http://t.co/xK7fKhEnmZ
— Dan Gilbert (@cavsdan) November 7, 2014
GM CEO: “Judge Rhodes’ decision is historic and a validation for everyone...committed to Detroit. pic.twitter.com/28WcdfktwE
— Robert Snell (@RobertSnell_DN) November 7, 2014
Orr: “With Judge Rhodes’s historic decision, Detroit moves further along the path toward financial stability..."
— Chad Livengood (@ChadLivengood) November 7, 2014
It’s obviously a bright future for #Detroit and I wish @MayorMikeDuggan and the city council well as they face the remaining challenges.
— L. Brooks Patterson (@BrooksPatterson) November 7, 2014
Emergency Manager Kevyn Orr issued a statement;
“With Judge Rhodes’s historic decision, Detroit moves further along the path toward financial stability and success as a viable and attractive place to live, work and invest. My team and I are pleased that Judge Rhodes agrees that the Plan is the best way for the City to resolve its financial difficulties and remain on solid financial footing.
“This decision would not have been possible without the hard work, compromise and sacrifice of so many people and organizations that put aside their considerable differences and came together for the benefit of Detroit’s future. "
