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Detroit's Bankruptcy Blueprint Expected Friday

<p>The plan will spell out how individual creditors will be treated as Detroit reduces $18 billion debt in the largest municipal bankruptcy ever.</p>
/ Source: The Associated Press
Detroit will file a plan Friday to lay out how it will treat creditors and assets in the largest municipal bankruptcy ever.
Detroit will file a plan Friday to lay out how it will treat creditors and assets in the largest municipal bankruptcy ever.JOSHUA LOTT / Reuters

The office of Detroit's state-appointed emergency manager Kevyn Orr says the blueprint for the city's restructuring through and after bankruptcy is expected to be filed Friday in federal court.

Bankruptcy Judge Steven Rhodes had set a March 1 deadline for the long-awaited plan of adjustment.

The plan will spell out how individual creditors will be treated as Orr reduces the city's $18 billion debt. Spokesman Bill Nowling says Orr's office plans to file the plan with the court Friday.

A draft given last month to creditors showed retirees and pensioners getting $4.3 billion in payments and bondholders about $1.1 billion over the next 40 years, leaving the city with a nearly $336 million surplus. Orr had hoped to have the plan ready before January but was delayed by ongoing negotiations.