Removal of Orr as the city’s emergency manager and restoring power back to Detroit Mayor Mike Duggan and the nine-member city council could come as soon as Sept. 29.
Detroit and bond insurer Syncora finished the deal announced last Tuesday to settle over $400 million in claims.
A judge has suspended Detroit’s bankruptcy trial until Monday to give the city more time to work out details of a settlement with a major creditor.
Under Michigan state law, Kevyn Orr has the power to veto Detroit City Council’s vote and go ahead with the $1.4 million sale.
The joint filing by the city and bond insurer Syncora Guarantee said that they “have reached an agreement in principle” to settle the company’s $400 million claim in the nation’s largest-ever municipal bankruptcy case.
“All the revenue sources creditors can reach and are permitted to reach are exhausted,” Bennett told Judge Steven Rhodes.
Syncora Guarantee said in a court filing that the plan put together by state-appointed emergency manager Kevyn Orr and attorneys hired by the city is unfair.
Kevyn Orr is moving ahead with a plan to privatize the city’s parking department despite the City Council’s rejection of the proposal.
Mayor Mike Duggan is getting more control over city operations — including the embattled water department.
A judge still must hold a trial to determine if Detroit’s overall bankruptcy plan is fair and feasible, but support from retirees is vital.