Bernie's Feed
Aug 29, 2013

Detroit seeking $350 million financing to terminate swaps deal

DETROIT (Reuters) – Detroit, which made the largest Chapter 9 municipal bankruptcy filing in U.S. history, will on Thursday issue requests for proposals for $350 million in financing, the city emergency manager’s office said.

Detroit would be the first large U.S. city to seek so-called debtor-in-possession financing after asking for bankruptcy court protection.

Aug 28, 2013

Detroit can keep casino tax revenue, judge rules

DETROIT (Reuters) – Cash-strapped Detroit can continue to access an estimated $11 million a month in casino tax revenue, a U.S. bankruptcy judge ruled on Wednesday, while the court takes up a deal with creditors related to the revenue.

U.S. Bankruptcy Judge Steven Rhodes, who is overseeing Detroit’s bankruptcy petition, ruled that bond insurer Syncora Guarantee Inc cannot block the city from using taxes paid by the city’s three casinos.

Aug 22, 2013

U.S. August auto sales to rise 12 percent: J.D. Power & LMC

By Bernie Woodall

(Reuters) – U.S. auto sales in August are on pace to show a 12 percent rise from last year, market analysts J.D. Power & Associates and LMC Automotive said on Thursday.

Total new vehicle sales should be nearly 1.5 million in August, a 12 percent increase from 2012, which translates to a seasonally adjusted annualized rate of 16 million, J.D. Power and LMC said in a joint statement.

Aug 21, 2013

Bankruptcy judge to consider opening secret Detroit ‘data room’

DETROIT (Reuters) – The city of Detroit may have to open its digital vault of financial information that includes what the city’s fiscal future could look like.

U.S. bankruptcy judge Steven Rhodes will hold a hearing at 3 p.m. ET on Wednesday to allow attorneys for the city to argue why a digital “data room” should be kept from the public.

Aug 20, 2013

Detroit bankruptcy challenged on constitutional grounds

DETROIT (Reuters) – Public labor unions took aim at Detroit’s historic bankruptcy filing on Monday, asking a U.S. court to toss the city’s bid for protection from its creditors because it is constitutionally flawed on both the state and federal levels.

A union that represents public-sector workers even took the unusual step of arguing that Chapter 9 of the federal bankruptcy code, under which municipalities seek protection from their creditors, violates the U.S. Constitution.

Aug 19, 2013

Detroit union files challenge to city’s bankruptcy petition

DETROIT (Reuters) – One of Detroit’s biggest public labor unions on Monday became the first major party to file an objection to the city’s bankruptcy filing ahead of a midnight deadline for challenges.

The American Federation of State, County and Municipal Employees Council 25 said Detroit, which last month filed for what would be the largest-ever U.S. municipal bankruptcy, has not proven it is insolvent and has not negotiated in good faith with its creditors. In a filing with the U.S. Bankruptcy Court in Detroit, the union said it was also challenging the constitutionality of Chapter 9 of the federal bankruptcy code, which governs municipal bankruptcies, arguing that it encroaches on states’ rights.

Aug 15, 2013

Detroit pension funds to object to city’s bankruptcy

DETROIT (Reuters) – Detroit’s two public pension funds will file an objection on Monday to the city’s bankruptcy filing on Michigan constitutional grounds, a representative of the pension boards said on Thursday.

The challenge expected from the pension funds is the first to emerge from among several parties likely to object to the city of Detroit’s claim that it is bankrupt.

Aug 14, 2013

Ford targets higher capex, dividend boost by mid-decade

DETROIT (Reuters) – Ford Motor Co (F.N: Quote, Profile, Research, Stock Buzz) on Wednesday laid out a more ambitious mid-decade plan that includes a higher dividend and a 25 percent increase in capital spending, to take advantage of growing automotive demand worldwide.

Ford’s plans will “enable us to sustain an investment grade credit rating through the inevitable downturn to come,” Bob Shanks, the automaker’s chief financial officer, said in a Ford presentation at an analysts conference sponsored by J.P. Morgan.

Jul 25, 2013

BorgWarner net up on demand for fuel-efficient vehicles

By Bernie Woodall

(Reuters) – BorgWarner Inc (BWA.N: Quote, Profile, Research, Stock Buzz), maker of automotive turbochargers and emission systems, posted higher-than-expected profit on Thursday as global demand for more fuel-efficient vehicles continued to rise in the second quarter.

Borg Warner boosted its earnings forecast for 2013 to a range of $5.40 to $5.55 per share from a previous range of $5.15 to $5.45.

Jul 24, 2013

U.S. judge halts challenges to Detroit’s bankruptcy bid

DETROIT (Reuters) – A U.S. bankruptcy court judge on Wednesday suspended lawsuits challenging Detroit’s historic bankruptcy filing while he reviews the city’s petition for protection from creditors.

Following the first hearing in the case earlier on Wednesday, Judge Steven Rhodes issued a stay on all litigation related to the bankruptcy.