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Detroit Last-Ditch Talks on Cutting Debt May Take Months

Whether Detroit careens into the largest U.S. municipal bankruptcy depends on emergency manager Kevyn Orr’s convincing creditors during the next two months that his plan will revive a city plagued by deficits, crime and strained services.

Talks with debt holders, unions and retirees to erase a $386 million budget gap may last into July or August, Orr said, adding that he has held meetings already. He said he’s preparing for possible Chapter 9 bankruptcy if he can’t strike deals to restructure $15.7 billion in long-term obligations.