As creditors prepare to vote on a plan to end Detroits $18 billion bankruptcy, the city still needs help from state lawmakers to pay its obligations while avoiding a fire sale of its fine art collection.
The deal struck last week is a sign of progress in negotiations to exit bankruptcy and would shift 26 percent of $388 million in claimed liabilities to pensions and to overdue payments on debt.
Detroit Emergency Manager Kevyn Orr said time is running out for creditors to reach an agreement with the city on a plan to resolve the biggest U.S. municipal bankruptcy.
The bungalow suburb of 37,000 residents asked Michigan for a review of its finances, which are so shaky that it diverted $2.5 million to pensions from a water and sewer account.
The money would be in addition to $330 million that nine foundations pledged through bankruptcy-court mediation to reduce city pension cuts and to shield Detroits art collection from a sale to pay $11.5 billion in unsecured debt.
The proposal marks a new direction for a governor who has said he opposed a state bailout that focuses only on reducing the citys $18 billion in debt.
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"uri": "/2015/02/05/detroit-pension-cuts-prompt-cries-of-betrayal/",
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"summary": "Detroits bankruptcy plan resolved a pension crisis with creative strokes, though at a cost to retirees who thought their benefits were untouchable.",
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"summary": "Detroit asked to end its record $18 billion municipal bankruptcy, a request that may be fulfilled by days end.",
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"summary": "As creditors prepare to vote on a plan to end Detroits $18 billion bankruptcy, the city still needs help from state lawmakers to pay its obligations while avoiding a fire sale of its fine art collection.",
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"summary": "The new deal would increase to $916 million the amount the plan would contribute to reduce cuts to retiree benefits.",
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"uri": "/2014/03/24/detroits-orr-says-time-for-bankruptcy-talks-runnin/",
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"summary": "Detroit Emergency Manager Kevyn Orr said time is running out for creditors to reach an agreement with the city on a plan to resolve the biggest U.S. municipal bankruptcy.",
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"summary": "The bungalow suburb of 37,000 residents asked Michigan for a review of its finances, which are so shaky that it diverted $2.5 million to pensions from a water and sewer account.",
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"uri": "/2014/01/31/detroit-bankruptcy-plan-favors-pensioners-over-bon/",
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"summary": "The draft plan given to creditors this week by Emergency Manager Kevyn Orr offers different recovery rates for classes of unsecured creditors.",
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"summary": "The money would be in addition to $330 million that nine foundations pledged through bankruptcy-court mediation to reduce city pension cuts and to shield Detroits art collection from a sale to pay $11.5 billion in unsecured debt.",
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