DETROIT – A federal judge has formally closed Detroit’s historic bankruptcy case, ending more than a decade of court supervision over the city’s finances and marking the final step in one of the largest municipal restructurings in U.S. history.
U.S. Bankruptcy Court Judge Thomas Tucker on Wednesday (May 20) granted the city’s motion for a final decree closing the Chapter 9 case that began in July 2013, when Detroit, then under a state-appointed emergency manager, filed for bankruptcy protection.
The closure was made possible after the city completed a final distribution of about $10 million to claimants.
The payment represented accrued interest on Class 14 notes issued to unsecured creditors, who were among the last groups to receive partial repayment.
Overall, the bankruptcy process allowed Detroit to shed roughly $7 billion in debt and restructure another $3 billion, freeing about $150 million annually for city services, officials said.
City leaders said the case closure confirms Detroit’s compliance with its Plan of Adjustment, including ongoing obligations tied to pension payments and long-term fiscal restructuring.
Officials noted that Fiscal Year 2027 will mark the fourth consecutive year of pension contributions supported by the Grand Bargain and the city’s Retiree Protection Fund.
Since exiting active bankruptcy oversight in 2014, Detroit has posted multiple consecutive balanced budgets and surpluses, along with credit rating upgrades, officials said, pointing to sustained fiscal stability and improved city services.