Detroit creditors receive preliminary plan

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Associated Press

Posted on January 29, 2014 at 5:34 PM

Updated Wednesday, Jan 29 at 6:06 PM

DETROIT (AP) — The state-appointed emergency manager who is overseeing Detroit's finances has given creditors his proposal to restructure the city's debt as he takes it through the largest municipal bankruptcy in U.S. history.

Kevyn Orr says Wednesday in a release that the plan "outlines the treatment each class of creditors would receive" under the city's bankruptcy.

He says the plan may be modified before it's filed in about two weeks with the bankruptcy court. Details were not released.

Police and Fire Retirement System spokesman Bruce Babiarz tells The Associated that since the plan is part of the city's mediation with creditors its contents can't be discussed.

Orr filed for bankruptcy July 18. Federal Judge Steven Rhodes in December ruled Detroit is eligible to fix its finances in bankruptcy court.

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