Advertisement

Detroit: Bankruptcy plan will be filed next week

This July 18, 2013, shows the Detroit skyline from Grand River in Detroit.
This July 18, 2013, shows the Detroit skyline from Grand River in Detroit. THE CANADIAN PRESS/AP, Carlos Osorio

DETROIT – The city of Detroit says it will file a plan to emerge from bankruptcy next week, just days before a March 1 deadline.

The disclosure was made Monday by attorney Bruce Bennett during a hearing in the case.

READ MORE: Detroit’s debt restructuring plan ‘complicated’

Detroit filed for bankruptcy last summer, claiming $18 billion in long-term debt. It recently shared a reorganization plan with creditors, although that plan is subject to change while negotiations occur in private.

READ MORE: Judge to decide on Detroit’s deal to pay off debt

The plan so far includes the possible spinoff of the city’s water department to a regional authority, a move that’s been criticized by the suburbs.

Foundations and the Detroit Institute of Arts are pledging nearly $500 million to prop up pensions and prevent the sale of city-owned art. Gov. Rick Snyder also wants the state to kick in millions.

Advertisement

Sponsored content