Detroit Bankruptcy Plan of Adjustment revealed

(WXYZ) - 7 Action News has obtained a copy of the 99 page Detroit Bankruptcy Plan of Adjustment that is labeled privileged and confidential. 

We took it to Bankruptcy Attorney and expert Stuart Gold who says it has a lot of contingencies, blank spaces where "billion dollar numbers will go". He also said it is too early to know whether creditors and retirees will get 10 cents or 20 cents on the dollar. 

The plan does call for a VEBA, a Voluntary Employees Beneficiary Association to handle retiree heath care.  This may sound familiar as a component in General Motors and Chrysler bankruptcies to handle their legacy costs. 

Retirees will be able to vote in or out of a settlement.  The Plan talks about the Foundation for the Detroit Institute to protect the art and provide an estimated $800 million for retiree pensions.  The plan mentions as a contingency a sale of the Detroit Water Department giving it a new name the Great Lakes Water and Sewer Authority. 

It has not been determined if that will include Oakland and Macomb Counties, or just Wayne, Detroit and possibly the State of Michigan.  A Disclosure Statement is not part of the Plan and when it comes out, it will be more specific on numbers.  There is no set timetable when creditors will respond. 

Some talking to 7 Action News say they are having their experts go over the detailed and technical document and could have a response once all the numbers are known. 

The Plan of Adjustment will be filed with Bankruptcy Court and made public within a couple of weeks.

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