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Pension and Welfare

With court's approval, Detroit emerges from bankruptcy

With court's approval, Detroit emerges from bankruptcy

Detroit emerged Friday from the nation’s largest municipal bankruptcy with a life line as it seeks to recover from an ocean of debt and mismanagement that threatened to drown the onetime symbol of U.S. industrial might.

The court approval of the city’s bankruptcy exit plan ends a painful chapter in Detroit history and opens new challenges as it grapples with urban blight, population flight and the decay of businesses.

The decision also reaches beyond Detroit’s borders, affecting bond markets, touching on how much pension protection retired city workers can expect if their city goes bankrupt and offering a blueprint for how future municipal bankruptcies can be...