CHICAGO - Detroit is expected to file its long-awaited debt adjustment plan Friday.
A spokesman for Detroit emergency manager Kevyn Orr said the city would file the plan Friday in federal bankruptcy court, according to several reports.
The blueprint will offer the first comprehensive and public look at how the bankrupt city plans to treat its creditors, who are owed an estimated $18 billion. For bondholders, a key issue is the city's decision to treat its general obligation bonds as unsecured, shaking up a traditional belief that GO bonds are among the safest investments.
A draft plan circulated to creditors several weeks ago had the city paying pensioners more than bondholders. Orr's spokesman recently said Detroit would file the plan even if important restructuring proposals, such as a $1.9 billion lease of the water and sewer department, remain incomplete.
Federal bankruptcy Judge Steven Rhodes has given the city until March 1 to file the plan.