DETROIT — Detroit’s updated bankruptcy plan was filed in federal court on Monday, revealing new details on how the city plans to restructure its debt and provide public services during the largest municipal bankruptcy in U.S. history.
The amended plan of adjustment — considered Detroit’s bankruptcy blueprint — and accompanying disclosure statement offer new details on the terms of a settlement with two banks to pay off a bad pension debt deal. The documents also make minor clarifications in how much pension benefits for city retirees would be cut.
“We believe that the plan we have proposed, and continue to refine, is feasible and allows the city to reduce its staggering $18 billion in debt and live within its means,” state-appointed emergency manager Kevyn Orr said. “The plan puts the focus back on providing essential public services to the city’s nearly 700,000 residents.”
Under the new plant, Detroit agreed to pay $85 million to settle claims on a pension debt deal with UBS and Bank of America. The two creditors also have said they will support Mr. Orr’s plan.
Federal Judge Steven Rhodes must still approve the latest settlement. He denied earlier proposals for $220 million and $165 million settlements.