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Detroit Emergency Manager Proposes Plan To Creditors
[DETROIT.CBSLOCAL] There's still a 50-50 chance bankrupt, increasingly impoverished, reliably Democrat Detroit... ruled by Democrats since 1962. A city whose Golden Age included the Ford and the Purple Gang... will file for bankruptcy. That's according to Detroit Emergency Manager Kevyn Orr, who has detailed a plan for the city's financial future in a 134-page proposal to creditors. Orr on Friday sat down in a closed-door meeting with about 150 creditors, bond holders and unions to discuss the city's fiscal situation, seeking concessions that would save Detroit millions of dollars in payments. Perhaps the most dramatic aspect of his plan: Orr said, starting now, there will be a moratorium on debt payments for all unsecured funded debt. Creditors are being asked to take about 10 cents on the dollar of what's owed them. Underfunded pension claims would get less. This latest comes as Detroit continues to spend more money than it takes in as revenue. The city's budget deficit could top $380 million by July 1, and Orr now estimates the city's long-term debt at $20 billion. "This is not a jaded effort just to get to a bankruptcy filing," said Orr, addressing news hounds following Friday's meeting. "I sincerely want people to behave rationally and take this opportunity to work together." As part of the proposal, Orr said he wants to invest $1.25 billion in the city for police and fire; and $500 million to fight blight. The plan also includes sweeping changes to pension and health care benefits, which Orr said he'll discuss at a meeting with unions and pension leaders next Thursday. Posted by: Fred 2013-06-15 |
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