Welcome!

News Feed Item

City of Detroit Files Amended Plan of Adjustment, Disclosure Statement

Contains additional detail on treatment to creditor classes, retirees and plans to invest $1.5 billion on improved services for residents

DETROIT, March 31, 2014 /PRNewswire/ -- The City of Detroit (the "City") today filed an amended plan of adjustment (the "Plan") and a related disclosure statement (the "Disclosure Statement") with the U.S. Bankruptcy Court for the Eastern District of Michigan.  The filing offers additional details about the:

  • Proposed $816 million settlement to help fund public employee pensions and preserve the collection of the Detroit Institute of Arts for the benefit of the public.
  • Settlement with the counterparties to the swaps related to the City's pension certificates of participation.
  • Revised classification and treatment of various impaired creditor classes in the Plan.

In all, the amended filing offers greater detail regarding the Plan the City first proposed on Feb. 21 and the City's restructuring efforts.  The City expects to file further amendments to the Plan and Disclosure Statement before the scheduled April 14 hearing to approve the final Disclosure Statement to reflect further developments in the City's Chapter 9 case.  The City looks to exit its historic bankruptcy by late summer as a fiscally solvent municipality that is better able to provide basic services to its residents.

"The City continues to make progress with its creditors and retirees and hopes to reach agreement in the near term on a number of outstanding issues," said Kevyn D. Orr, Emergency Manager for the City of Detroit.  "We believe that the Plan we have proposed, and continue to refine, is feasible and allows the City to reduce its staggering $18 billion in debt and live within its means.  The Plan puts the focus back on providing essential public services to the City's nearly 700,000 residents."

Substantive changes or additions to the revised Plan and Disclosure Statement include:

  • Detailed terms of the negotiated settlement between the City and UBS and Merrill Lynch over pension interest rate swap agreements on pension obligation certificates. Under this agreement, the City agrees to pay $85 million (down from $288 million) to settle the claims, and the counter parties agree to relinquish their interest in the City's casino tax and development revenue, currently worth at least $15 million a month, once the settlement amount is fully paid.  UBS and Merrill Lynch also agree to vote in support of the Plan during the confirmation period.
  • Creation of a separate class of impaired creditors holding claims related to retiree health, dental, vision and death benefits.  This new impaired class will be treated the same way as other non-pension unsecured classes of claims. 
  • Greater clarification for retirees on how much pension benefit reductions would be should the two pension classes accept or reject the Plan (and the proposed $816 million in outside funding).  Very generally speaking, for Police and Fire Retirement System participants, a 'Yes' vote would mean a pension benefit reduction of 6 percent and elimination of cost of living adjustments; a 'No' vote would entail a 14 percent benefit reduction and elimination of cost of living adjustments.  Very generally speaking, for General Retirement System participants, a 'Yes' vote would mean a 26 percent pension benefit reduction and elimination of cost of living adjustments; a 'No' vote would mean a 34 percent pension benefit reduction and elimination of cost of living adjustments.

Copies of the Plan and Disclosure Statement, along with additional information and links related to the Chapter 9 case, can be found at http://www.detroitmi.gov/EmergencyManager.aspx.  Bankruptcy Court filings are available online, free of charge, at http://kccllc.net/Detroit.

Miller Buckfire & Co., Jones Day, Ernst & Young and Conway MacKenzie Inc. are advising the City of Detroit on its restructuring.

SOURCE City of Detroit

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
SYS-CON Events announced today that Hitrons Solutions will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Hitrons Solutions Inc. is distributor in the North American market for unique products and services of small and medium-size businesses, including cloud services and solutions, SEO marketing platforms, and mobile applications.
@GonzalezCarmen has been ranked the Number One Influencer and @ThingsExpo has been named the Number One Brand in the “M2M 2016: Top 100 Influencers and Brands” by Onalytica. Onalytica analyzed tweets over the last 6 months mentioning the keywords M2M OR “Machine to Machine.” They then identified the top 100 most influential brands and individuals leading the discussion on Twitter.
In an era of historic innovation fueled by unprecedented access to data and technology, the low cost and risk of entering new markets has leveled the playing field for business. Today, any ambitious innovator can easily introduce a new application or product that can reinvent business models and transform the client experience. In their Day 2 Keynote at 19th Cloud Expo, Mercer Rowe, IBM Vice President of Strategic Alliances, and Raejeanne Skillern, Intel Vice President of Data Center Group and G...
Financial Technology has become a topic of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 20th Cloud Expo at the Javits Center in New York, June 6-8, 2017, will find fresh new content in a new track called FinTech.
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
Manufacturers are embracing the Industrial Internet the same way consumers are leveraging Fitbits – to improve overall health and wellness. Both can provide consistent measurement, visibility, and suggest performance improvements customized to help reach goals. Fitbit users can view real-time data and make adjustments to increase their activity. In his session at @ThingsExpo, Mark Bernardo Professional Services Leader, Americas, at GE Digital, discussed how leveraging the Industrial Internet and...
SYS-CON Events announced today that delaPlex will exhibit at SYS-CON's @CloudExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. delaPlex pioneered Software Development as a Service (SDaaS), which provides scalable resources to build, test, and deploy software. It’s a fast and more reliable way to develop a new product or expand your in-house team.
Web Real-Time Communication APIs have quickly revolutionized what browsers are capable of. In addition to video and audio streams, we can now bi-directionally send arbitrary data over WebRTC's PeerConnection Data Channels. With the advent of Progressive Web Apps and new hardware APIs such as WebBluetooh and WebUSB, we can finally enable users to stitch together the Internet of Things directly from their browsers while communicating privately and securely in a decentralized way.
"Matrix is an ambitious open standard and implementation that's set up to break down the fragmentation problems that exist in IP messaging and VoIP communication," explained John Woolf, Technical Evangelist at Matrix, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Information technology (IT) advances are transforming the way we innovate in business, thereby disrupting the old guard and their predictable status-quo. It’s creating global market turbulence. Industries are converging, and new opportunities and threats are emerging, like never before. So, how are savvy chief information officers (CIOs) leading this transition? Back in 2015, the IBM Institute for Business Value conducted a market study that included the findings from over 1,800 CIO interviews ...
Web Real-Time Communication APIs have quickly revolutionized what browsers are capable of. In addition to video and audio streams, we can now bi-directionally send arbitrary data over WebRTC's PeerConnection Data Channels. With the advent of Progressive Web Apps and new hardware APIs such as WebBluetooh and WebUSB, we can finally enable users to stitch together the Internet of Things directly from their browsers while communicating privately and securely in a decentralized way.
"We host and fully manage cloud data services, whether we store, the data, move the data, or run analytics on the data," stated Kamal Shannak, Senior Development Manager, Cloud Data Services, IBM, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
While DevOps most critically and famously fosters collaboration, communication, and integration through cultural change, culture is more of an output than an input. In order to actively drive cultural evolution, organizations must make substantial organizational and process changes, and adopt new technologies, to encourage a DevOps culture. Moderated by Andi Mann, panelists discussed how to balance these three pillars of DevOps, where to focus attention (and resources), where organizations might...
Zerto exhibited at SYS-CON's 18th International Cloud Expo®, which took place at the Javits Center in New York City, NY, in June 2016. Zerto is committed to keeping enterprise and cloud IT running 24/7 by providing innovative, simple, reliable and scalable business continuity software solutions. Through the Zerto Cloud Continuity Platform™, organizations can seamlessly move and protect virtualized workloads between public, private and hybrid clouds. The company’s flagship product, Zerto Virtual...
Some people worry that OpenStack is more flash then substance; however, for many customers this could not be farther from the truth. No other technology equalizes the playing field between vendors while giving your internal teams better access than ever to infrastructure when they need it. In his session at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will talk through some real-world OpenStack deployments and look into the ways this can benefit customers of all sizes....