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.
