Wednesday, December 10, 2014 8:09 pm
The US city of Detroit exited its record-setting bankruptcy Wednesday, offering hopes of renewal for the troubled former industrial hub.
A plan approved by a federal judge in November to restructure the city’s $18 billion debt went into effect, ending the position of the city’s appointed emergency manager and transferring Detroit’s financial future back into the hands of the mayor and city council.
“This has been an extremely difficult and hard process for many people,” Michigan’s Governor Rick Snyder told reporters.
“Now most importantly we have the city poised for a new chapter, a new chapter that is about the growth of the city of Detroit after decades of decline.”
Detroit’s financial collapse in July 2013 was the largest municipal bankruptcy in US history.
Urban decay in the “Motor City” saw whole city blocks crumble and homicide rates climb. Detroit was seen by many as a symbol for the country’s financial woes after the 2008 economic downturn.
Part of the funds freed up by the debt restructuring will be invested in the city’s neglected public services.
Detroit suffered a major power outage at the beginning of the month, cutting off electricity to jails, schools and hospitals for hours.