Judge poised to make decision that could end Detroit's bankruptcy in just under 16 months

Economic IndicatorsAssociated Press

The judge overseeing Detroit's bankruptcy is ready to decide whether the city's plan to regain solvency is a good one.

Judge Steven Rhodes promises to announce his decision early Friday afternoon in a downtown courtroom. His task: to declare whether Detroit's plan is fair to creditors and feasible for the years ahead, the key standard under bankruptcy law.

Continue Reading Below

Detroit is shedding $7 billion in debt. General retirees voted in favor of a 4.5 percent cut in pensions and the elimination of annual cost-of-living payments. The city also is pledging to spend $1.7 billion over 10 years to improve everyday services.

Emergency manager Kevyn Orr, who took Detroit into bankruptcy, says the city will be on a "little bit of a diet for a while."