Court-appointed expert says Detroit bankruptcy exit plan feasible; ruling expected next month

Associated Press

A financial expert appointed to advise Detroit's bankruptcy judge says the city's plan to return to solvency is feasible.

Martha Kopacz is testifying Wednesday as a trial nears an end. Judge Steven Rhodes can allow Detroit to emerge from bankruptcy if he finds its plan is fair to creditors and feasible for the long run.

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Rhodes plans to hear closing arguments next week and make a decision by Nov. 7.

The Boston-based Kopacz has participated in hundreds of financial restructurings. The judge hired her for an opinion on the Detroit case.

Detroit is shedding billions in debt, taking on new debt and cutting pensions by 4.5 percent, among many steps.

Many of Kopacz' conclusions were in a July report. She says there are challenges, especially an overhaul in information technology.