Detroit: Bankruptcy plan will be filed next week

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DETROIT (AP) - The city of Detroit says it will file a plan to emerge from bankruptcy next week, just days before a March 1 deadline.

The disclosure was made Monday by attorney Bruce Bennett during a hearing in the case.

Detroit filed for bankruptcy last summer, claiming $18 billion in long-term debt. It recently shared a reorganization plan with creditors, although that plan is subject to change while negotiations occur in private.

The plan so far includes the possible spinoff of the city’s water department to a regional authority, a move that’s been criticized by the suburbs.

Foundations and the Detroit Institute of Arts are pledging nearly $500 million to prop up pensions and prevent the sale of city-owned art. Gov. Rick Snyder also wants the state to kick in millions.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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