Feedback
Business

City of Detroit to File Its Bankruptcy Emergence Plan Next Week

City of Detroit, more than $18 billion in debt, says it will file a plan next week on how it will emerge from bankruptcy.
City of Detroit, more than $18 billion in debt, says it will file a plan next week on how it will emerge from bankruptcy. Bill Pugliano / Getty Images

The city of Detroit will file a plan next week outlining how it will emerge from bankruptcy, just days before a March 1 deadline. The disclosure was made Monday by attorney Bruce Bennett during a hearing in the case, the largest muncipal bankruptcty in U.S. history. 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. 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. Michigan Gov. Rick Snyder also wants the state to kick in millions.

- The Associated Press