06/07/2013 09:23 am ET

Detroit To Offer Creditors Pennies On The Dollar In Pitch To Avoid Bankruptcy

AP/Duane Burleson

Detroit’s attempt to avoid bankruptcy will hit a critical stage next week as emergency manager Kevyn Orr brings together dozens of creditors to present a stark offer: less than 10 cents on the dollar for the loans, bonds, retiree obligations and other debts that have been strangling the city for years.

Orr is expected to meet late next week — his office wouldn’t say exactly when, but the location likely will be near Metro Airport — with as many as 150 representatives of the city’s major creditors, from big national banks that hold the city’s bonds and insurers who guarantee them, to unions and pensioners who rely on the city for retirement income and health care.

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