Detroit's emergency manager said yesterday that he expects to push back the date he will file city's debt-cutting plan in bankruptcy court, the Wall Street Journal reported today. "The City had hoped to file its plan of adjustment and disclosure statement with U.S. Bankruptcy Court at the end of this week, but that time frame is likely to be moved back until next week to accommodate ongoing negotiations and mediation meetings," Emergency Manager Kevyn Orr said yesterday. "The City nonetheless remains prepared to file its plan on or before the March 1 deadline established by U.S. Bankruptcy Judge Steven Rhodes.” This week's negotiations could alter the balance of payments to 27 creditor classes identified in the plan. Of those, 16 stand to receive less than what they are owed by the city. Last month, Mr. Orr sent creditors a draft of the proposed debt-reorganization plan. While the creditors can object to, and will have a vote on, the so-called plan of adjustment on what the city owes to them, Judge Steven Rhodes will have the final say to approve or deny the plan. To date, Detroit and its creditors haven't commented publicly on the draft plan that addresses the city's long-term obligations previously estimated at $18 billion.
