Detroit EM Kevyn Orr gives proposal to creditors

Detroit emergency manager is asking creditors to take 10 cents on dollar of what's owed to them


In a 128-page proposal, Detroit Emergency Manager Kevyn Orr lays out the city's economic struggle and objectives for financial restructuring to creditors.

Orr met with creditors Friday morning where he offered his proposal.

View/download PDF: City of Detroit Proposal for Creditors

Orr has instituted a moratorium on all of Detroit's payments on unsecured debt as he goes before creditors seeking forgiveness of millions of dollars owed by the city.

Orr spent about two hours Friday morning with dozens of people representing banks, insurers and companies holding Detroit debt. He told reporters earlier at an airport hotel in Romulus that he wants to fix fiscal problems that have made the city insolvent.

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Creditors are being asked to take about 10 cents on the dollar of what's owed them. Underfunded pension claims would get less.

Orr's team said about $2.5 billion in general unsecured debt won't be recovered.

He also said $1.25 billion will be set aside over 10 years for public safety, lighting and neighborhood blight elimination.

Orr held a conference with reporters after his Friday morning meeting with city creditors.

"I think it went well," he said.

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