Feb 20 Detroit's state-appointed emergency
manager expects to file a roadmap in federal court on Friday
detailing how the city will treat some $18 billion of debt and
other obligations as it tries to exit bankruptcy, a city
spokesman said on Thursday.
"Friday is the present expected day to file," said Bill
Nowling, a spokesman for Kevyn Orr, the city's emergency
Judge Steven Rhodes, who is overseeing Detroit's bankruptcy
case -- the largest municipal bankruptcy in U.S. history -- set
a March 1 deadline for the plan.
The city sent a proposed plan to adjust its debts to
creditors on Jan. 29. A copy of the confidential proposal
obtained by Reuters indicated that Detroit's largest unsecured
creditors, its two pension systems, would fare better than
owners of city bonds.
The city said the proposed plan reflected discussions with
creditors and said it could be modified before being presented
The proposal excluded interest-rate swap agreements from the
settlement plan after Rhodes twice rejected deals between the
city and swap providers to end them at a discounted cost.
However, an attorney representing Detroit told Rhodes on
Wednesday that a new deal with UBS AG and Merrill
Lynch Capital Services over the swaps would be revealed
The swaps, which were used to hedge interest rate risk on
some of the $1.45 billion of pension debt Detroit sold in 2005
and 2006, soured when interest rates and the city's credit
The money the city owed the investment banks has been a key
element in the bankruptcy case. Detroit on Jan. 31 filed a
lawsuit seeking to invalidate the pension debt.