The city of Detroit emerged from bankruptcy on Dec. 10, closing a painful chapter in its history and opening the door to a potentially brighter future.
Detroit marked the largest municipal bankruptcy in American history, according to The New York Times. Its historic bankruptcy filing lasted a total of 17 months – relatively short compared to similar filings. Despite the good news, public officials noted that there is a lot of work ahead of them and the city’s residents.
“How do you deliver service in a city where the unemployment rate is double the state average, and we’ve got to rebuild a water system and a bus system and a computer system and a financial system?” said Mayor Mike Duggan on Dec. 10, according to the news source. “It’s all going to be a challenge.”
Elected almost a year ago, despite control of the city remaining with Emergency Manager Kevyn Orr, Duggan spoke about a fresh start as of tomorrow, the Times reported. He said that he and other officials would do the best they could to deliver on the services that Detroit’s residents deserve. The city’s plan of reorganization, which is allowing it to shed $7 billion of its debt and commit $1.7 billion to investing in city services, gives Detroit the tools it needs to have a chance at success, according to Duggan.
Orr addressed the media as well, calling his departure bittersweet, according to The Detroit News. He noted that, officially, the city will be out of bankruptcy at midnight. While some mediation regarding bankruptcy legal fees will continue on, it will not affect the city’s exit.
“It’s important for me to step back and return the city to the regular order,” Orr said, according to the news source.
As a bankruptcy and creditors right’s attorney, I’ve had a keen eye Detroit’s bankruptcy; from its inception, to its lowest points, I’ve covered the entire story. You can get the full scoop from some of my previous blog posts on Detroit’s Bankruptcy.