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Detroit Emergency Manager Presents Plan Of Adjustment To Creditors

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Detroit Emergency Manager Kevyn Orr (Credit: Bill Pugliano/Getty Images)

Detroit Emergency Manager Kevyn Orr (Credit: Bill Pugliano/Getty Images)

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DETROIT (WWJ/AP) – We don’t know yet what’s in it, but state-appointed emergency manager Kevyn Orr has presented creditors with his proposed plan to restructure Detroit’s debt while moving the city through the largest municipal bankruptcy in U.S. history.

“Our focus has been to help Detroit regain a strong economic footing,” said Orr, in a media release. “There is much work still to do and we believe the proposed plan provides the roadmap for all parties to resolve all outstanding issues and facilitate the City’s efforts to achieve long-term financial health.

“While this process is not an easy one, I appreciate the concerns people in the Detroit metro area are facing as a result of the city’s problems. Time is of the essence – the longer we remain entrenched in our positions and fail to reach an agreement, the worse life gets for Detroit’s 700,000 residents and the greater our collective challenges become,” Orr said. “We need to move quickly and efficiently. My team and I believe this plan presents each interested party with fair and equitable treatment, and we look forward to working with our creditors to adopt this Plan and put Detroit back on the path to stability and success.”

Police and Fire Retirement System spokesman Bruce Babiarz told The Associated Press the pension fund received Orr’s “preliminary plan of adjustment” about 3 p.m. Wednesday.

Babiarz said he can’t discuss what’s in the plan because it is part of a confidential mediation process involving the city, the pension funds, unions, banks and other creditors.

Orr filed for bankruptcy July 18, saying the city’s debt is at least $18 billion. Federal Judge Steven Rhodes in December ruled Detroit is eligible to fix its finances in bankruptcy court.

Orr was given until March 1 to propose a plan to take the city out of bankruptcy.

The AP left messages Wednesday seeking comment from Orr’s office and Mayor Mike Duggan.

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Continuing Coverage: Detroit Bankruptcy

TM and © Copyright 2014 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2014 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.

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