Detroit raced toward this week’s bankruptcy trial

In this July 16, 2013 aerial file photo, the downtown of the city of Detroit is shown. Detroit Emergency Manager Kevyn Orr raised more than a few eyebrows a year ago when he took the city into bankruptcy and predicted it would be out by the time his term expired in fall 2014. Because it is by far the largest city to file for municipal bankruptcy and the issues were so complex many experts predicted it would take years to resolve. But the city will take a major step toward that goal with a trial in federal bankruptcy court that starts Tuesday, Sept 2, 2014. (AP Photo/Paul Sancya, File)

By Associated Press August 31, 2014 4 min read

DETROIT (AP) – It took decades of mismanagement, malfeasance and meltdowns in its bread-and-butter manufacturing sector for Detroit to hit fiscal rock bottom. The path to exit bankruptcy could take less than a year and a half.

After some delays, the confirmation trial for the largest municipal bankruptcy in U.S. history is scheduled to start Tuesday.

Massive debt, thousands of creditors and complex union and pension issues had many experts thinking Detroit’s bankruptcy would take years to resolve, considering two California cities – Stockton and San Bernardino – filed a year before Detroit did and still haven’t settled on plans.

Detroit expects to cut $12 billion in unsecured debt to about $5 billion, which is “more manageable,” according to Bill Nowling, a spokesman for emergency manager Kevyn Orr.

“None of it will get wiped out until the plan is confirmed and the judge issues an effective date,” Nowling told The Associated Press. “And it happens really fast after that.”