City of Detroit Files Proposed Plan of Adjustment in Bankruptcy Proceedings

more+
less-

On February 21, the City of Detroit filed a proposed plan of adjustment and disclosure statement in its Chapter 9 bankruptcy proceedings. The proposed plan would provide general obligation bond claims with a 20 percent recovery. It proposes to settle pending litigation with each holder of certificates of participation with a claim for 40 percent of face value. Those reduced claims would then receive a 20 percent recovery. Pension beneficiaries would receive a range of recoveries generally greater than 20 percent of their claim amount. The plan also proposes to spin off the Detroit Water and Sewerage Department. This proposed plan is likely the beginning of a highly controversial process. Disclosure Statement. Plan of Adjustment.


DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Orrick - Structured Finance Group | Attorney Advertising

Written by:

more+
less-

Orrick - Structured Finance Group on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.
×
Loading...
×
×