Detroit won U.S. Bankruptcy Court approval on Friday for a road map to end its fiscal free fall and revitalise a city sinking under a huge debt load and dysfunctional government.

Judge Steven Rhodes confirmed the city’s plan to shed about $7 billion of its $18 billion of debt and obligations and plough $1.7 billion into improvements, finding it both fair to creditors and feasible to implement.

“The city has worked honestly, diligently, and tirelessly to accomplish precisely the remedy that the bankruptcy code establishes for municipalities,” Mr. Rhodes said.

He acknowledged the anger the bankruptcy fuelled among many Detroit residents and urged them to look forward.