Judge allows Detroit to start bankruptcy exit plan immediately
Credit: Reuters/Rebecca Cook
A large ''Opportunity Made In Detroit'' banner is seen on the side of one of the buildings owned by Quicken Loans founder Dan Gilbert in downtown Detroit, Michigan January 30, 2013.
'The city needs to begin implementing this plan immediately,' Federal Bankruptcy Judge Steven Rhodes said at a hearing on the confirmation order for implementing the plan.
On Friday, Rhodes ruled the plan for cutting $7 billion in debt was fair to creditors and feasible for the city to implement. The second step in the process is issuing a confirmation order that sets a start-date for the plan's many measures and settlements.
The city is eager for the plan to take effect soon so it can obtain an exit loan and set up retiree healthcare associations created as part of a settlement with pensioners by the end of the year.
(Reporting By Peter Suciu; Additional reporting by Karen Pierog in Chicago and Lisa Lambert in Washington Editing by W Simon)
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