(DETROIT) — The city of Detroit filed a plan of adjustment in U.S. Bankruptcy Court on Friday that would restructure the city’s debt in an attempt to emerge from the largest municipal bankruptcy in U.S. history.
The office of Detroit’s Emergency Manager Kevyn Orr details the plan, saying that the city will invest about $1.5 billion in the next decade to improve police, fire and emergency services along with garbage removal.
The investment funds will also be used to bring in and keep residents and businesses to catalyze redevelopment and improve the city’s technological systems.
The plan also includes alterations to the city’s pension plan that would allow city employees to maintain their quality of life, while ensuring that the city can afford to pay out the funds.
The plan “provides for the adjustment of up to $18 billion in secured and unsecured debt,” Orr says, “and offers the greatest possible recoveries for the city’s creditors while simultaneously allowing for meaningful and necessary investment in the city.”
Copyright 2014 ABC News Radio
Kristina Tieken, FamilyShare
Eric Levenson, Devon Sayers and Jamiel Lynch, CNN
Eliott C. McLaughlin and Paul Vercammen, CNN
Ariane de Vogue, CNN