Detroit Peddles Its Municipal Assets to Avoid Record Bankruptcy
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Detroit is suspending payments on $2 billion of unsecured debt, marketing parking garages and telling retirees to rely on President Barack Obama’s health-care law to avoid a record municipal bankruptcy.
Those are among proposed changes in a 128-page restructuring plan Emergency Manager Kevyn Orr offered yesterday at a meeting of creditors in Detroit. The moves, including spending $1.25 billion over 10 years to bolster safety and remove blight, will give an insolvent city a viable future, Orr said.