Detroit Creditors Receive Preliminary Plan

January 29, 2014 – In The News
Associated Press

Michael Sweet was quoted in the Associated Press article "Detroit Creditors Receive Preliminary Plan." While the full text can be found in the January 29, 2014, issue of the Associated Press, a synopsis is noted below.

Detroit Emergency Manager Kevyn Orr on Wednesday gave the city’s creditors copies of his plan to restructure the debt, though it could be modified prior to the court reviewing it.

Since the city filed for bankruptcy, Orr has proposed freezing pension benefits to thousands of city workers and reducing healthcare benefits.

Those actions were part of the emergency manager’s preview to his plan of adjustment, according Michael Sweet.

"He's trying to get it out there in a way to make it digestible to people," Sweet said

Another part of Orr’s plan will likely include the future of artwork housed at the Detroit Institute of the Arts. In an attempt to keep the art from a potential sale, a coalition of foundations has pledged $370 million to go toward pension benefits for retirees.

All of that "likely means less of a hit to pensioners and the opportunity to keep important cultural assets within the community," Sweet said. "But it remains to be seen what the impact of these deals will be on the outcome of the city's bankruptcy."