Orr's plan for Detroit delayed

Jan 9, 2014

DETROIT (AP) - Detroit's state-appointed emergency manager is delaying the release of his plan to shepherd the city through bankruptcy.

A spokesman for Kevyn Orr told The Associated Press on Thursday that no new date is being given for the report's release because the city is continuing mediation with creditors.

Orr had said he'd submit his plan to a federal bankruptcy judge in early January. The court-imposed deadline is mid-March.

Spokesman Bill Nowling says negotiations with UBS and Bank of America on terminating a swaps deal tied to pension debt payments is playing a part in the delay.

Orr and the banks initially reached a $220 million payoff, but the judge ordered Detroit to negotiate a better deal. The city did, for $165 million, but Nowling says that deal needs to be finalized.