DETROIT (AP) — Detroit’s emergency manager has filed a plan to restructure the city’s $18 billion debt.
It makes cuts to pensioners and creditors while offering a blueprint for the city to emerge from the largest municipal bankruptcy in U.S. history.
Kevyn Orr’s plan was filed Friday in federal bankruptcy court. An early draft of the filing called for city pensioners to receive $4.3 billion in payments and bondholders about $1.1 billion during the next 40 years.
That draft also detailed plans to help pensioners keep more of what they are owed by using state and private funds to protect art at the Detroit Institute of Arts.
The plan still faces numerous obstacles. Most aspects are still being negotiated in mediation sessions with stakeholders.
Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.