![](\"https:\/\/static.foxbusiness.com\/foxbusiness.com\/content\/uploads\/2026\/05\/detroit-mayor-mary-sheffield.jpg\")
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‘The Big Money Show’ reacts to Detroit officials rolling out cash incentives to attract residents and boost economic growth.<\/p>\n
Detroit\u2019s historic bankruptcy case \u2014 the largest municipal bankruptcy in U.S. history \u2014 has officially closed more than 13 years after the city first sought Chapter 9 protection amid a financial collapse that reshaped the city\u2019s finances, pensions and long-term fiscal strategy.<\/p>\n
U.S. Bankruptcy Judge Thomas Tucker granted the city\u2019s motion for a final decree this week, formally ending the case after determining administration of the bankruptcy had been completed.<\/p>\n
The closure marks the end of a years-long restructuring effort that eliminated roughly $7 billion in debt and restructured another $3 billion, according to the city, freeing up an estimated $150 million annually for city services.<\/p>\n
SPIRIT AIRLINES LAWYER SAYS JET FUEL PRICE SURGE LEFT CARRIER WITH ‘NO REMAINING WAY OUT’ OF BANKRUPTCY<\/p>\n
Mary Sheffield speaks after being sworn in as mayor at the Detroit Opera House on Jan. 9, 2026, in Detroit, Michigan. (Monica Morgan\/Getty Images)<\/p>\n
Mayor Mary Sheffield called the milestone evidence that Detroit “has its financial house in order,” pointing to 12 consecutive balanced budgets and surpluses, reserve funds topping $500 million and the city\u2019s return to investment-grade status.<\/p>\n
The formal closure also comes as major credit-rating agencies have highlighted Detroit\u2019s improved fiscal position.<\/p>\n
An aerial view of downtown Detroit. (iStock)<\/p>\n
One day before the bankruptcy case officially closed, S&P Global Ratings upgraded Detroit\u2019s general obligation bond rating to BBB+ from BBB, citing the city\u2019s “sustained strong financial performance and governance conditions.”<\/p>\n
Moody\u2019s similarly said Detroit had strengthened its “financial resiliency” in recent years, citing strong reserves and improved fiscal management since emerging from bankruptcy in 2014.<\/p>\n
MAJOR US CITY OFFERS CASH INCENTIVES TO SPARK GROWTH, ATTRACT NEWCOMERS<\/p>\n
Still, both ratings agencies warned the city remains vulnerable to broader economic pressures tied to the automotive sector, inflation and long-term pension obligations.<\/p>\n
Skyline of Detroit. (Roberto Machado Noa\/LightRocket via Getty Images)<\/p>\n
The closure came after Detroit completed a final distribution of roughly $10 million tied to accrued interest on “Class 14 B notes,” financial recovery bonds issued to unsecured creditors during the restructuring.<\/p>\n
Detroit filed for bankruptcy in July 2013 under a state-appointed emergency manager after years of population decline, shrinking tax revenues and rising pension liabilities pushed the city into insolvency.\u00a0<\/p>\n
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The city officially exited bankruptcy in late 2014 under a restructuring plan that became a national case study in municipal financial recovery.<\/p>\n
#Detroit #bankruptcy #case #officially #closes #years #historic #filing<\/p>\n","protected":false},"excerpt":{"rendered":"
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