Detroit rescinds plan monitor role in corrected plan of adjustment

By Kali Hays

New York, July 30 – The City of Detroit removed the proposed plan monitor position in a corrected version of its fifth amended plan of adjustment filed July 29 with the U.S. Bankruptcy Court for the Eastern District of Michigan.

As previously reported, responsibilities of the plan monitor were to include the evaluation of the city's ongoing compliance with the plan and confirmation order while filing quarterly reports with the court regarding creditor distributions and the status of various claims-related litigation until the Chapter 9 case was closed.

Under the corrected version of the plan, a Financial Review Commission will be established upon the effective date of the plan, which will provide general oversight of the payment of claims and ongoing litigation and ensure the city adheres to the plan through completion.

In addition, the city will appoint a distribution agent in connection with a limited tax general obligation (LTGO) bond settlement.

According to a revised scheduling order, the confirmation hearing for the plan is set to begin Aug. 21.

Detroit filed bankruptcy on July 18, 2013 under Chapter 9 case number 13-53846.

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