The Plan of Adjustment that the City of Detroit filed with the U.S. Bankruptcy Court for the Eastern District of Michigan on February 21, 2014 represents a critical step toward the city’s rehabilitation and recovery from a decades-long downward spiral. The Plan provides for the adjustment of up to as much as $18 billion in secured and unsecured debt and offers the greatest possible recoveries for the city’s creditors while simultaneously allowing for meaningful and necessary investment in the city.
In connection with the Plan, the city intends to: Invest approximately $1.5 billion over 10 years to, among other things:
Improve and provide essential municipal services to the city’s 700,000 residents, including police, fire and emergency medical services, garbage removal and functioning streetlights;
Attract and retain residents and businesses to foster growth and redevelopment; and
Improve the city’s information technology systems, thereby increasing efficiency and decreasing costs.
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