New Detroit bankruptcy plan in the hands of creditors
A new proposed plan to end Detroit's $18 billion bankruptcy would pay bondholders 20 cents on the dollar and give police and firefighters higher pension payouts than other city employees. Now disagreement from both bond insurers and unions is expected to usher in a new, more contentious phase of negotiations.
Detroit's plan to end its $18 billion bankruptcy assumes bondholders offered 20 cents on the dollar will eventually swallow a deal that guarantees police and firefighters collect 90 percent of their pensions.
The city's debt-adjustment plan, filed on Friday in U.S. Bankruptcy Court in Detroit, is b
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