Revenue projections in Detroit's debt adjustment plan will be hard to achieve, but restructuring initiatives will bring in new money and help make Detroit's plan feasible, Detroit's chief financial officer said yesterday in bankruptcy court, Reuters reported. John Hill, who was appointed the city's CFO last November, testified that the plan would eventually gain money for Detroit as the restructuring initiatives bring about changes, including higher collections of unpaid taxes. Hill was the first witness called by the city of Detroit as it seeks a federal bankruptcy judge's endorsement of its financial restructuring plan. If revenue comes in below projections after Detroit emerges from bankruptcy, that would lead to changes in the plan, which would require the approval of an oversight commission created for the city under Michigan law, according to Hill. The CFO referred to the city's plan to shed about $7 billion of its $18 billion of debt and other obligations as a road map for operating Detroit once it exits the biggest-ever U.S. municipal bankruptcy.
