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Detroit expected to debt restructuring plan Friday

Published: Friday, Feb. 21, 2014 9:08 a.m. CDT
Caption
(AP Photo/Carlos Osorio)
In a photo from Feb. 12, 2014, the Detroit skyline is seen from the city's midtown. Detroitís creditors and residents are expected to get their first official glimpse this week of the road out of bankruptcy, even as fights and tinkering continue. A proposal to restructure the cityís debt could be filed by state-appointed emergency manager Kevyn Orr to the bankruptcy court as early as Wednesday, Feb. 19. Itís considered a blueprint for Detroit, undergoing the largest municipal bankruptcy in U.S. history.

DETROIT — A plan to get the city of Detroit through and out of bankruptcy is expected to be filed before a court-imposed deadline.

A spokesman for state-appointed emergency manager Kevyn Orr has said the plan will be filed in federal bankruptcy court Friday, though the deadline for filing is March 1.

The plan will spell out how those receiving city pensions, retirees, banks, bond insurers and other creditors will fare under Orr's efforts to trim down Detroit's $18 billion debt.

A draft given last month to creditors showed retirees and pensioners getting $4.3 billion and bondholders about $1.1 billion over 40 years, leaving the city with a nearly $336 million surplus.

The plan will be accompanied by a statement outlining reinvestment in Detroit, including municipal services, during the next 10 years.

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