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City of Detroit Execution of Framework Filed

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The City of Detroit, Michigan; the State of Michigan; the County of Oakland, Michigan; the County of Wayne, Michigan and the County of Macomb, Michigan (collectively, the Counties) filed with the U.S. Bankruptcy Court a memorandum of understanding (MOU) regarding the formation of the Great Lakes Water Authority to operate, control and improve both the water supply and sewage disposal systems owned by the City and presently operated by the Detroit Water and Sewerage Department (DWSD). According to the MOU, “The Board of Authority shall be comprised of six voting members….The City shall lease the Systems (except the Detroit local system infrastructure) to the Authority for an initial term of 40 years, extendable to at least match the term of any outstanding bonds of the authority. Consideration for the lease shall be $50 million common-to-all charge per year.” Upon execution of the MOU, the Counties that filed this MOU and previously filed objections to the City’s Plan of Adjustment will “immediately withdraw with prejudice their objections” to Plan confirmation.

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