Detroit’s debt restructuring plan ‘complicated’
DETROIT (AP) — Detroit’s emergency manager has released what bankruptcy experts say is a “complicated” preliminary plan for restructuring the city’s debt.
Now emergency manager Kevyn Orr is hoping to get Detroit’s creditors to give their blessing. But bankruptcy experts interviewed by The Associated Press on Friday said even they could not decipher who stands to get the best deal.
The plan calls for city retirees and pensioners to receive $4.3 billion in payments and bondholders about $1.1 billion over the next 40 years. But it isn’t clear on how they shake out in terms of the percentage of what they’re actually owed.
The plan is touted as the blueprint for Detroit’s future and key in the city’s sojourn through the largest municipal bankruptcy in U.S. history.
Orr’s office would not comment Friday.
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