Bankruptcy plan of adjustment won't be filed Wednesday

DETROIT (WXYZ) - Detroit city sources are confirming to 7 Action News that the bankruptcy Plan of Adjustment will not be filed with court today. 

Sources say it will be filed by the end of the week.  The Plan along with a Disclosure Statement will outline Detroit's future after bankruptcy, including day to day services, pension cuts for city retirees and payment plans to other creditors. 

It is not clear whether pending contingencies have been resolved, including a plan to save art from a potential sale at the Detroit Institute of Arts in exchange for $800 million to go to retirees pensions.

It is also undetermined if plan has been completed to turn the Detroit Water and Sewerage Department over to a regional authority. 

Also today, Bankruptcy Judge Steven Rhodes will hold a hearing over whether the city can turn some bond holders into unsecured creditors.  This would be an unprecedented move.  The amount of the debt on those bonds is $369 million and a small part of Detroit's $18 billion debt. 

Wall Street Insurance companies are on the hook to cover those losses and are expected to make arguments during the court hearing. 

Closed door mediation is also continuing today and sources say some city employee and retiree groups are ready to settle and some are not.  The city is also asking the judge to break up some of the bargaining committees.

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