April 26 (Bloomberg) — Retired public workers reached a tentative agreement with Detroit that shores up their health benefits, removing another obstacle to resolving the city's record $18 billion municipal bankruptcy.

Michigan's largest city filed for bankruptcy in July saying it couldn't meet financial obligations and provide adequate services. Since then, it's been negotiating with creditors including public pension systems and unions.

Detroit has been seeking to build support for a debt- adjustment plan ahead of a creditor vote that could begin as early as next month. Kevyn Orr, its emergency financial manager, has said he hopes the city could exit bankruptcy in October.

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