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Detroit to file bankruptcy restructuring plan

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February 21, 2014 08:07 AM EST | AP


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.