Detroit Bankrupcy Proceedings Reach Deal On Some Bonds
DETROIT (AP) — The city of Detroit has reached a deal on over $388 million in bonds — one component of the largest municipal bankruptcy filing in U.S. history.
Mediators say Detroit will pay 74 cents for each dollar in the claim. The balance of the claim will be erased, and the money will go to help low-income retirees.
The deal was announced Wednesday. It still needs the blessing of Judge Steven Rhodes and is only a small part of the overall bankruptcy case.
In a statement, mediators say they hope the settlement will encourage other creditors to reach more deals. Detroit hopes to exit bankruptcy by fall, but the city's plan first must face a series of court hearings in summer.
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