Detroit — One of Detroit’s lead bankruptcy attorneys said Monday the city plans to file its debt-cutting reorganization next week.
City attorney Bruce Bennett of the Jones Day law firm made the disclosure Monday morning during a brief status conference before U.S. Bankruptcy Judge Steven Rhodes over two lawsuits filed against the city for defaulting on general obligation bond payments.
Rhodes has set a March 1 deadline for the city file its plan of adjustment with the court.
“We expect it to be filed next week,” Bennett said.
Detroit Emergency Manager Kevyn Orr sent the city’s main creditors a confidential preliminary draft copy of the plan on Jan. 29. The city released a statement that day saying the plan of adjustment would be filed with the court “in approximately two weeks,” meaning it would be filed some time this week.
The 99-page plan, obtained by The Detroit News, called for leasing the city’s water and sewerage department to a new regional authority for $47 million a year, but contained blanks and missing passages in describing its treatment for pensioners and other creditors.
Closed-door mediation negotiations are likely to intensify this week as the city seeks to line up creditor support for the plan.