WASHINGTON, November 8 (RIA Novosti) – A US judge has confirmed a plan to rescue Detroit out of bankruptcy, by cutting some of its debt and investing $1.7 billion in the city's public services, a statement from the US Bankruptcy Court for the Eastern District of Michigan says.
"Bankruptcy Judge Steven Rhodes announced his decision today confirming the Eighth Amended Plan of Adjustment filed by the City of Detroit," the statement, released Friday, says.
According to the city's plan, $7 billion of Detroit's debt will be slashed and $1.7 billion will be invested in its public services while pensions will be cut by 4.5 percent.
The city of Detroit filed for bankruptcy in July, 2013, having accumulated an estimated $18 billion of debt. Detroit, which became the largest city in US history to declare bankruptcy, was also suffering from increased unemployment and a decreasing population.
Residents of Detroit have been struggling to pay their water bills and have suffered from water shutoffs, which threaten "a wide range of human rights", according to the United Nations.
