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January 21, 2014

Detroit manager: Bankruptcy plan weeks away

DETROIT (AP) — Emergency manager Kevyn Orr says a plan to take Detroit out of bankruptcy won't be ready this month.

Orr had promised a plan by January, but negotiations between the city and creditors have changed the timetable. The Detroit News ( ) says he describes the talks as "robust" and says he hopes they wrap up by mid-February.

Orr spoke Tuesday to an advisory board that is monitoring Detroit's finances.

A judge last week turned down a $165 million settlement that would have released the city from a disastrous deal with banks. Judge Steven Rhodes says it was too generous for banks.

Orr says he'll soon decide whether to sue the banks as a way to reach a compromise. Orr's team has suggested that the deal hatched years ago was illegal.

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