Detroit Legal Team to Submit $150Mln Final Bills to City Over Bankruptcy
Detroit Legal Team to Submit $150Mln Final Bills to City Over Bankruptcy © Flickr/ Ian Freimuth
WASHINGTON, December 22 (Sputnik) – Detroit’s attorneys and consultants will submit an expected $150 million in final bills for fees and expenses to the city on Monday, outlining the cost of the city’s bankruptcy before the city gives a final submission to the court, a spokesperson for a US District Court in Michigan told Sputnik.
“The deadline today is for all of the professionals to submit their final statement for fees and expenses to the city… and then the city has until the 30th to file its final disclosure of fees and expenses,” Rod Hansen, a spokesperson for a US District Court of the Eastern District of Michigan, told Sputnik on Monday.
Once the city files its final disclosure submission of fees and expenses of the total cost of the city’s bankruptcy to the Detroit court by the end of the year, a hearing will follow on January 5th.
“The city and its confirmation plan set aside $147 million for attorney fees and expenses. That’s at least in the ballpark of what the city thinks it’s [final bill submission] going to be… about 150 million,” Hansen said.
On December 10, the city of Detroit announced that it had exited from over a year’s long worth of bankruptcy after accumulating about $18 billion in debt.
According to US media reports, the city’s bankruptcy plan includes cutting over $7 billion in liabilities and reinvesting $1.7 billion over a 10 year period in services such as police and information technology.
The city of Detroit filed for bankruptcy in July 2013, having accumulated an estimated $18 billion in debt. Detroit, which became the largest city in US history to declare bankruptcy, is also dealing with increased unemployment and a shrinking population.