Tags: detroit | bankruptcy | debt

Detroit to Stop Making Some Debt Payments, Emergency Manager Says

Friday, 14 Jun 2013 12:00 PM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink

Detroit's emergency manager on Friday called for "shared sacrifice" among all the city's creditors and said payments on certain outstanding bonds would stop immediately.

Kevyn Orr proposed that creditors, including bondholders and pension funds, give up some of the $17 billion they are owed by Detroit to help the insolvent city avoid filing what would be the biggest municipal bankruptcy in history.

The moratorium on principal and interest payments on the city's unsecured debt, including a $34 million payment on pension certificates of participation due on Friday, would allow the city to conserve cash needed to provide services to residents, Orr said.

Unsecured creditors, including bondholders and pension funds, will receive a pro rata share of $2 billion of notes the city would issue and pay off as its financial circumstances improve.

City workers and retirees would also face changes to their pensions and health care coverage "consistent with available funding."

An oversight board would be created for Detroit, similar to one created after New York City's financial difficulties in 1979, that would ensure reforms are sustained, Orr said.

© 2014 Thomson/Reuters. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Washington Museum Won't Give up Guns After All

Saturday, 22 Nov 2014 20:47 PM

A small museum in northwestern Washington state says it won't be removing all of the weapons from its World War II exhib . . .

State Senator Protesting Ferguson a Victim of Attempted Carjacking

Saturday, 22 Nov 2014 19:56 PM

A Missouri state senator and gun-control advocate who has protested police actions in Ferguson surrounding the Michael B . . .

FBI Arrests 2 Would-be Ferguson Bomb Suspects

Saturday, 22 Nov 2014 18:05 PM

Two men suspected of buying explosives they planned to detonate during protests in Ferguson, Missouri, once a grand jury . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved