How did Detroit come out of bankruptcy?
When Detroit exited bankruptcy on Dec. 10, 2014, the future wasn’t supposed to be one of endless austerity. Detroit was given a restructuring path, called the Plan of Adjustment, that envisioned the city spending $1.7 billion over 10 years to finance new investments and improvements to services.
Has Detroit recovered from bankruptcy?
Detroit’s Big Comeback: Out Of Bankruptcy, A Rebirth Five years after filing for bankruptcy protection, Detroit has achieved a financial feat few experts predicted.
What happened to Detroit pensions?
The city’s bankruptcy Plan of Adjustment gave Detroit a decade-long reprieve from making regular pension fund payments, while cutting retirees’ pension and health care benefits and transferring current workers to a less generous retirement plan.
Did Detroit default on their bonds?
Detroit also made history last year by becoming the largest municipal default in U.S. history, with $8.4 billion of bonds outstanding. The city is trying to repudiate $1.4 billion of certificates of participation sold for its pensions, the first attempted repudiation since the 1970s, according to Moody’s.
Why did Detroit go bankrupt?
The Real Reason Detroit Went Bankrupt. As the story goes, the city of Detroit went bankrupt because of $18 billion in long-term debt, in large part caused by pension and health care benefits.
Did Detroit declare bankruptcy?
The city of Detroit, Michigan, filed for Chapter 9 bankruptcy on July 18, 2013. It is the largest municipal bankruptcy filing in U.S. history by debt, estimated at $18–20 billion, exceeding Jefferson County, Alabama’s $4-billion filing in 2011.
What is the Detroit bankruptcy ruling means for Illinois?
Huebert: What the Detroit bankruptcy ruling means for Illinois By Jacob Huebert – Tuesday, U.S. Bankruptcy Court Judge Steven Rhodes ruled that “nothing distinguishes pension debt from any other debt” – and that Detroit’s pension debt can therefore be partially discharged in bankruptcy.
What happened to the city of Detroit?
In 1805, Detroit was burned to the ground with very few buildings surviving the fire. None of the residents were killed and the city began to rebuild. It was briefly surrendered to the British during the War of 1812 and was recaptured by the United States in 1813.