Emergency Manager Orr Comments on Detroit Bankruptcy Eligibility Ruling

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DETROIT, Dec. 3, 2013 — Emergency Manager Kevyn D. Orr today issued the following statement following federal bankruptcy Judge Steven Rhodes’ ruling on the city’s eligibility for Chapter 9 bankruptcy protection:
“We are pleased with Judge Rhodes’ decision today, and we will continue to press ahead with the ongoing revitalization of Detroit. We look forward to working with all our creditors – pension funds, unions and lenders – to achieve a consensual agreement on a restructuring plan that balances their financial recoveries with the very real needs of the 700,000 citizens of Detroit.
“We are making good progress. In addition to today’s important decision, Detroit has transferred its electric operations and customers to DTE Energy and begun a program to improve City lighting. It has announced plans to privatize trash collection that will save $6 million a year while improving services and adding curbside recycling. It has invested in sorely needed equipment for its police, fire and other first responders. The City also has arranged, pending a court hearing later this month, $350 million of post-petition financing to improve its financial condition, lessen some of its debt obligations, and make much-needed investments. The City is also committed to the federal mediation already underway aimed at resolving disputes with its creditors and we fully support U.S. District Court Chief Judge Gerald Rosen’s efforts to find additive solutions, particularly from the philanthropic community, to the City’s financial issues.
“Time is of the essence and we will continue to move forward as quickly and efficiently as possible. We plan to submit a Plan of Adjustment in the coming weeks, file a Disclosure Statement early next year and work to exit Chapter 9 protection by the end of September. We hope all parties will work together to help us develop a realistic restructuring plan that improves the financial condition of Detroit and the lives of its 700,000 citizens.”

Read more http://www.michronicleonline.com/index.php/news-briefs-original/15794-emergency-manager-orr-comments-on-detroit-bankruptcy-eligibility-ruling

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