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.
(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.
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.
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.
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.
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.
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.
(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.
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.
DETROIT, July 24 (Reuters) – A U.S. bankruptcy court judge
said he may rule later on Wednesday on whether lawsuits
challenging Detroit’s bankruptcy filing on state constitutional
grounds should be suspended while he reviews the city’s petition
for protection from creditors.
Judge Steven Rhodes recessed Wednesday’s first hearing in
Detroit’s historic municipal bankruptcy filing to consider
arguments he heard earlier from attorneys representing the city,
its unions and pension funds and others.