EM Orr files Plan of Adjustment
Includes $1.5 billion over 10 years to improve city services
DETROIT – Emergency Manager Kevyn Orr filed, Feb. 21, the City’s Plan of Adjustment and a related Disclosure Statement with the United States Bankruptcy Court for the Eastern District of Michigan. The Plan and Disclosure Statement provide the details of the City’s proposal to “(i) adjust up to as much as $18 billion in secured and unsecured debt, (ii) implement a necessary 10-year plan to invest in the City and improve essential services and public safety … and (iii) restore its heritage as a productive, vibrant American city,” according to a press statement.
Orr’s restructuring advisers include firms, Jones Day, where he was a former partner just before his appointment as EM, Miller Buckfire & Co., Ernst & Young and Conway MacKenzie Inc., which now employs former state treasurer Andy Dillon, who recommended Detroit for emergency management (see http://michigancitizen.com/ex-treasurer-andy-dillon-enriches-himself-off-detroit-bankruptcy/ ).
A summary of the Plan, along with additional information and links relating to the Chapter 9 case, can be found at http://www.detroitmi.gov/EmergencyManager.aspx. Bankruptcy Court filings are available online, free of charge, at http://kccllc.net/Detroit.
– Staff report