Detroit files final bankruptcy plan of adjustment
Updated On: May 05 2014 05:43:26 PM EDT
The city of Detroit has filed its 4th and final bankruptcy plan of adjustment.
The city will present its final plan of adjustment to Judge Steven Rhodes. It's a critical step in staying on schedule.
Judge Rhodes allowed Emergency Manager Kevyn Orr to take the weekend to finalize the plan. The original deadline was Friday, but the city was given until noon Monday as Orr cited ongoing negotiations with public safety unions. It was filed just before noon.
View/download: Detroit bankruptcy plan
This latest plan includes all city unions with the exception of the Detroit police officers union and the Detroit firefighters. Now, the Detroit Police Lieutenants and Sergeants and the Detroit Police Command Officers Association are being included in the plan.
The city hopes to emerge from bankruptcy this fall. However, with the bulk of the work and deal making done, the city may have the chance to exit Chapter 9 earlier than anticipated.
"We've got all but two of our unions and all of our creditors with the exception of two in the plan and moving forward, and we think that is a very positive step for the city and I think it's going to allow us to get out of bankruptcy faster, which is really what we want to do," said Bill Nowling, spokesman for Orr.
Complete coverage: Detroit bankruptcy
Now, all eyes turn to Lansing to see whether the legislature will approve a $350 million bailout for the pensions and the Detroit Institute of Arts.