DETROIT (AP) – The judge overseeing Detroit’s bankruptcy is ready to decide whether the city’s plan to regain solvency is a good one.
Judge Steven Rhodes promises to announce his decision early Friday afternoon in a downtown courtroom. His task: to declare whether Detroit’s plan is fair to creditors and feasible for the years ahead, the key standard under bankruptcy law.
Detroit is shedding $7 billion in debt. General retirees voted in favor of a 4.5 percent cut in pensions and the elimination of annual cost-of-living payments. The city also is pledging to spend $1.7 billion over 10 years to improve everyday services.
Emergency manager Kevyn Orr, who took Detroit into bankruptcy, says the city will be on a “little bit of a diet for a while.”