Detroit's Ch. 9 Plan Draws Fierce, Immediate Criticism

Law360, Wilmington (February 21, 2014, 5:31 PM EST) -- The city of Detroit submitted its Chapter 9 plan Friday outlining a strategy to restructure its $18 billion in debt while setting aside $1.5 billion over the next decade for capital improvements, and has already met a firestorm of criticism from creditors that are slated to get a reduced recovery.

Under the plan, which the Michigan bankruptcy court must still approve, many secured creditors will see a 100 percent return, while pension funds will encounter cuts and unsecured creditors may obtain recoveries in the 20 percent...
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