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Detroit draws first map to get out of bankruptcy

February 22, 2014 • Business


FILE – In this Sept. 26, 2013 file photo a young man walks in front of a row of abandoned houses in Detroit. Detroit has thousands of decrepit and abandoned homes and buildings. The city’s proposal to emerge from bankruptcy includes a plan to demolish them. (AP Photo/Carlos Osorio, File)

DETROIT (AP) — Detroit presented its first full road map for leaving bankruptcy Friday, outlining an elaborate plan to restructure $18 billion in debt, demolish thousands of blighted homes and invest in the broken-down infrastructure that has made the city a symbol of urban decay.

If approved by a judge, the wide-ranging proposal would sharply reduce payments to some retirees and creditors. Pension holders could expect to get 70 percent to 90 percent of what they are owned, while many banks would receive as little as 20 percent.

The plan, which is sure to be the subject of court challenges, envisions a leaner, cleaner and safer Motor City after its crushing financial burdens are lifted.

“There is still much work in front of all of us to continue the recovery from a decades-long downward spiral,” Kevyn Orr, the city’s state-appointed emergency manager, said in a statement.

Orr’s so-called plan of adjustment “provides the best path forward for all parties to resolve their respective issues and for Detroit to become once again a city in which people want to invest, live and work.”

The state is focused “on protecting and minimizing the impact on retirees, especially those on fixed, limited incomes,” Login to read more

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