During a month of negotiations, Orr has reached a settlement with only two creditors: Bank of America Corp. and UBS AG. They have agreed to accept 75 cents on the dollar for approximately $340 million in swaps liabilities, according to a source familiar with the deal.

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Orr chronicled the city’s economic collapse in a detailed plan presented to creditors June 14 — a proposal that drew criticism from some who said the cuts were too deep and did not include the sale of city assets, including Belle Isle and a Detroit Institute of Arts collection. He proposed paying most of the money owed to secured creditors while pension funds, unions and unsecured bondholders would receive, in some cases, as little as 10 cents on the dollar.

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Orr said he wants to stabilize the city, woo new residents, provide essential city services, lower property taxes and transfer costly departments, including the water and sewerage, to an outside group.

The bankruptcy filing gives Orr unusual power to break promises made by past city officials that left Detroit on a path to spending almost 65 percent of every tax dollar on retiree pensions and health care.

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The filing serves as a grim reminder of the bankruptcies in the auto industry four years ago. Unlike the cases of General Motors and Chrysler in 2009, the White House offered no financial help.

http://www.detroitnews.com/article/20130718/METRO01/307180103