Plan to restructure Detroit's debt expected Friday
Associated Press, 2014-02-20
DETROIT -- The office of Detroit's state-appointed emergency manager says the blueprint for the city's bankruptcy restructuring is expected to be filed Friday in federal court.
Bankruptcy Judge Steven Rhodes had set a March 1 deadline for the long-awaited plan of adjustment. The plan will spell out how individual creditors will be treated as Orr reduces the city's $18 billion debt.
Spokesman Bill Nowling says emergency manager Kevyn Orr's office plans to file the plan with the court Friday.
A draft given last month to creditors showed retirees and pensioners getting $4.3 billion in payments and bondholders about $1.1 billion over the next 40 years, leaving the city with a nearly $336 million surplus.
Orr had hoped to have the plan ready before January but was delayed by ongoing negotiations.
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