Copper scrap sale to boost Detroit's finances

DETROIT (Scrap Monster): Detroit City plans to make millions of dollars by selling scrap copper. As testified by a city consultant during the City bankruptcy trial, Detroit plans to sell copper in underground and overhead electricity lines.

The City expects to collect nearly $25 million over the next five to six years through sale of copper cables. According to estimates, the City is losing approximately $1 million due to copper scrap theft from public distribution systems.

Detroit is phasing its electricity service over to DTE Energy Co. Additionally, as the city has started reducing the use of copper in lighting facilities, it will have leftover copper to the tune of approximately $13.5 million.

Altogether, the city could be able to garner nearly $40 million, the financial consultant stated.

The earlier version of the city’s bankruptcy exit strategy will be amended to include the above source of revenue as well. The eight amended version of the plan will be presented as Detroit races to a conclusion of confirmation hearings next week. The closing arguments are expected to begin next Monday.

The U.S. Bankruptcy Judge is to analyze the proposed plan and take a final decision on whether the plan provides a feasible contribution to Detroit’s efforts to restructure its debts so as to run the city operations over a long term. The final ruling is expected early November.