ROMULUS (WWJ/AP) - Creditors, bond holders and unions are meeting with Detroit’s state-appointed emergency manager to hear his plan to keep the city out of Chapter 9 bankruptcy.
Kevyn Orr called for Friday morning’s meeting at the Westin hotel at Detroit Metropolitan Airport in Romulus. He’s expected to seek concessions that will save Detroit millions of dollars in payments.
Detroit continues to spend more money than it takes in as revenue. Orr has said the city’s bond, pension, health care and other obligations are too high. The city’s budget deficit could top $380 million by July 1. Long-term debt is more than $14 billion.
Orr told residents at a community meeting this week that the chances of bankruptcy are 50-50. Reports last week said Orr is set to offer less than 10 cents on the dollar to settle the city’s debt.
Orr, a Washington-based bankruptcy attorney, was hired by the state in March after a financial emergency was declared in Detroit.
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