Detroit to file bankruptcy restructuring plan
In a photo from Feb. 12, 2014, the Detroit skyline
DETROIT (AP) -- The plan of adjustment for Detroit's bankruptcy is expected to be filed days before a court-imposed deadline.
A spokesman for state-appointed emergency manager Kevyn Orr says the plan will be filed Friday. Federal Judge Steven Rhodes set March 1 as the deadline.
The plan will spell out how pensioners, retirees, banks, bond insurers and other creditors will fare under Orr's efforts to trim down Detroit's $18 billion debt load.
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.
The plan will be accompanied by a disclosure statement, which outlines the level of reinvestment in Detroit, including municipal services, planned during the next 10 years.