May 5 (Bloomberg) — Detroit won bankruptcy court approval of an explanatory statement that creditors will receive before they vote on a debt-adjustment proposal to reduce employee pensions and cut bond debt.
U.S. Bankruptcy Judge Steven Rhodes approved the city's disclosure statement and a "plain language" explanation of how pension and retiree health benefits for current and former city employees would change under the plan to shrink the city's $18 billion in debt. Both will be sent to creditors beginning May 12 under a schedule Rhodes approved last month.
The city earlier today filed the last changes to the plan it will make before creditors vote. It included details of deals reached in recent weeks with current and retired workers.
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