By Daniel Hunter

The city of Detroit is set to exit the largest civic bankruptcy in US history and start paying off its creditors.

Detroit, which was once the biggest industrial cities in the US, went bankrupt in July 2013 with $18bn (£11bn) of debt.

The city's emergency manager Kevyn Orr told Michigan governor Rick Snyder that its financial crisis had been "rectified".

"If the city takes advantage of this unique opportunity to shed the problems of the past and stays on the path that has been blazed in restructuring, Detroit is poised to grow and thrive for the benefit of its residents and this state for many years to come," he said in a letter to governor Snyder.

Mr Snyder then agreed that Detroit is now able to meet the basic needs of its citizens and should exit bankruptcy.

In November, US judge Stephen Rhodes approved Mr Orr's plans to restructure the city's finances.

Join us on
Follow @freshbusiness