Detroit files plan to resolve record bankruptcy
Published on Feb 22, 2014 2:31 AM
(REUTERS) - Detroit filed a much-anticipated blueprint for dealing with US$18 billion (S$22.8 billion) of debt in US bankruptcy court on Friday that includes cuts of as much as 80 per cent for some unsecured bondholders.
The city's plan of adjustment, which the court must approve before Detroit can emerge from the biggest municipal bankruptcy in US history, also calls for a US$1.5 billion program to improve essential services and public safety over 10 years.
The cuts to certain unsecured creditors such as the city's two retirement systems and owners of certain Detroit bonds ranged from 10 per cent to as much as 80 per cent in the plan.
"We maintain that the plan provides the best path forward for all parties to resolve their respective issues and for Detroit to become once again a city in which people want to invest, live and work," Detroit's state-appointed emergency manager, Kevyn Orr, said in a statement.
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