Tells Certain Creditors, “You’ll Get NOTHING And Like IT!”
Robert Snell, Darren A. Nichols and Christine Ferrett, Detroit News
Emergency Manager Kevyn Orr unveiled a historic plan Friday to restructure the city’s finances and avoid the largest municipal bankruptcy filing in U.S. history, a proposal that was met with degrees of fear, outrage and stubbornness from creditors.
Orr will push ahead with his restructuring plan and attempt to fashion a deal by meeting with labor officials Thursday in Detroit while insisting resistance could push the city into a Chapter 9 filing later this summer.
The restructuring plan includes pension and retiree health care cuts, offering some creditors less than 10 cents on the dollar and an abrupt decision to stop paying unsecured debt so the city can fund essential services. Orr also said he wants to spin off the city water department to a regional authority.
“We are tapped out,” Orr told reporters following the nearly three-hour meeting at a Detroit Metropolitan Airport hotel.