Detroit files plan of adjustment detailing eventual exit from bankruptcy

Fri Feb 21, 2014 11:50am EST

Feb 21 (Reuters) - Detroit filed its much-anticipated plan to deal with $18 billion of debt in U.S. Bankruptcy Court on Friday, proposing cuts to pensions and to bondholders.

The city's plan of adjustment, which the court must approve before Detroit can emerge from the biggest municipal bankruptcy in U.S. history, also includes steps the city would take over 10 years to improve essential services and public safety.

The cuts to unsecured creditors such as the city's two retirement systems and owners of certain Detroit bonds ranged from 10 percent to as much as 80 percent in the plan.