DETROIT – Michigan Gov. Rick Snyder says Detroit's bankruptcy is officially ending.
Snyder said during a news conference Wednesday that the nation's largest municipal bankruptcy will end at midnight. He thanked the city's emergency manager, Kevyn Orr, who implemented a two-year budget that eliminates $7 billion in the city's debt.
Orr, the attorney who handled Chrysler's bankruptcy, was hired by Snyder last year to take over Detroit's finances.
"We look forward, truly, to a better time for the city going forward," Orr said. "More importantly it's time for me now to step back and return the city to its regular order."
Snyder and Orr took Detroit into bankruptcy in July 2013, as a last-ditch effort to overcome decades of population loss, a chronic loss of tax revenue and piles of debt that couldn't be managed.
The final plan came after months of negotiations with banks, bond insurers, unions and groups representing thousands of retirees. It's bolstered by a unique promise of $800 million from foundations, major corporations and the state to soften pension cuts and prevent the sale of city-owned art.
Retirees who didn't work for the police or fire departments will see a 4.5 percent pension cut by March and the elimination of annual cost-of-living payments.
Orr had extraordinary authority over Detroit government for 18 months before giving most of it back to Mayor Mike Duggan in September.
Snyder said Wednesday afternoon that the paperwork had been filed, and he expected it to be formally approved by the court later in the day.
"The financial emergency in the city of Detroit will be defined as wrapping up today," Snyder said.
Judge Steven Rhodes approved Orr's reorganization plan in November. A hearing is scheduled for Monday to deal with loose ends.