Detroit has paid nearly USD23 million in fees to lawyers, consultants and financial advisers through October 1. The city is awaiting a court decision determining its eligibility for bankruptcy protection.
Reuters, citing data released by the office of Detroit Emergency Manager Kevin Orr, said that Detroit agreed to pay over USD60 million to more than a dozen firms helping in its restructuring.
The city has paid USD4.59 million to restructuring firm Conway MacKenzie and USD4.17 million to accounting firm Ernst & Young, the report said.
Meanwhile, accounting firm Plante Moran received a payment of USD1.5 million, whilst investment banking firm Miller Buckfire was paid USD1.2 million through October 1.
According to Reuters, the beleaguered city has also amended several of its contacts as its bankruptcy claim moves forward. Conway MacKenzie will now be paid USD19.3 million instead of the USD4.2 million initially slated.
Ohio-based law firm Jones Day, which is representing Detroit in bankruptcy court, will be paid USD18 million in place of its initial USD3.35 million.
Reuters said that the city missed bond debt and pension payments in June to divert the USD95 million fund to its restructuring initiatives. Part of the fund will be used to enhance public safety.
Debt-ridden Detroit on July 18 filed the largest municipal bankruptcy in US history, the report said.
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