Ahead of Deadline: City to file readjustment plan within days

Ahead of Deadline: City to file readjustment plan within days

In federal court today, an attorney representing the city of Detroit said the city plans to file its plan of adjustment next week. That’s in advance of the bankruptcy court-imposed deadline of March 1.

Detroit’s daily newspapers have reported on drafts of the plan, specifically the provisions for leasing the city’s water and sewerage department to a regional authority. Pensioners and other creditors were not addressed in the draft acquired by The Detroit News while the Detroit Free Press reported the city planned to offer unsecured creditors less than pensioners, based on the copy reporters there obtained. The final plan must be approved by the bankruptcy judge.

The next scheduled court hearing is Feb. 19 when Judge Steven Rhodes will hear an objection from insurers to how the city is treating general obligation bonds.