(LANSING, Mich.) — A U.S. Bankruptcy Court ruled Tuesday that Detroit is legally eligible to pursue bankruptcy.
The ruling, according to Michigan Gov. Rick Snyder, allows the city to “stay on a path to a brighter future.”
Detroit can now file a plan to restructure nearly $18 billion in long-term debt. That figure is the largest municipal bankruptcy in U.S. history.
Snyder said, “Authorizing the emergency manager to seek federal bankruptcy protection was…the last viable option to restore the city and provide Detroit’s 700,000 residents with the public services they need and deserve.”
“We know that Detroit’s comeback is already in motion. We’ve seen the revitalization in downtown and midtown,” Snyder said. “There will be other difficult decisions as we work through this process. But Michigan and Detroit are resilient and are the comeback stories in the country.”
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