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April 18, 2014

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Detroit readying blueprint for bankruptcy exit

Updated Tuesday, Feb. 18, 2014 | 1:27 p.m.

DETROIT (AP) — Detroit's creditors and residents are expected to get their first official glimpse this week of the road out of bankruptcy, even as fights and tinkering continue.

As early as Wednesday, state-appointed emergency manager Kevyn Orr could send the bankruptcy court his proposal to restructure the city's debt. It's considered a blueprint for Detroit, which is undergoing the largest municipal bankruptcy in U.S. history.

A 99-page draft obtained last month by The Associated Press calls for massive changes that would leave the insolvent city that has an estimated debt of at least $18 billion with a nearly $336 million surplus.

Wayne State University law professor Laura Bartell cautions this is only the "first draft" of the restructuring plan and it's likely to go through many revisions.