Dec. 10 (Bloomberg) — Detroit will end tonight its record $18 billion municipal bankruptcy, a tumultuous episode that gave worldwide exposure to its crime, blight and crushing $18 billion of debt.
"The big news is how people can work together for the success of Detroit," Michigan Governor Rick Snyder said at a news conference in the city with Emergency Manager Kevyn Orr and Mayor Mike Duggan. "Detroit is a much better place than it was 18 months ago."
Snyder, a 56-year-old Republican, named Orr emergency manager in March 2013 under a law that gave him sweeping authority over Detroit's finances and government. The city last month won a judge's initial approval of a debt-cutting plan to allow the former auto-manufacturing giant to refashion itself after decades of population decline and decay.
The city's bankruptcy lawyers filed a notice in federal court saying its debt-cutting plan went into effect today, officially extinguishing about $7 billion of unsecured debt by imposing reductions on pensioners and other creditors.
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