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On July 18, 2013, the city of Detroit filed for Chapter 9 bankruptcy. The estimated $18–$20 billion filing remains the largest municipal bankruptcy in U.S. history.
Now, the city plans to begin distributing the final $10 million tranche to unsecured creditors and is expected to soon file a motion for a final decree in the U.S. Bankruptcy Court in Detroit to close the case, the Detroit News reports.
The News reports:
Detroit's bankruptcy reorganization plan gave former Mayor Mike Duggan and the City Council a 10-year break from contributing to city pensions — a break that ended in fiscal year 2024 — freed $150 million annually for spending on city services, restructured $3 billion in debt and wiped away $7 billion in various debts and liabilities, including reducing retiree health care benefits.
