DETROIT (Reuters) – With key players in Detroit’s historic bankruptcy case locked in marathon mediation sessions, the pressure is on bond insurer Financial Guaranty Insurance Co., the last major holdout creditor, to settle with the city.
Judicial mediator Gerald Rosen has ordered the city and some of its major creditors including FGIC to keep talking until they come to an agreement. Another deadline looms outside of the court process: Kevyn Orr, the city’s emergency manager, is expected to end his term on Sept. 29.
DETROIT Sept 9 (Reuters) – Detroit and one of its last
hold-out creditors, Syncora Guarantee Inc, have reached an
agreement in principle over the city’s plan to adjust its debt
and exit bankruptcy, according to a federal court filing on
The city and the bond insurance company asked the U.S.
Bankruptcy Court to suspend an ongoing confirmation hearing on
the plan until Friday so they can “address certain conditions
DETROIT, Sept 5 (Reuters) – Detroit could not afford to
undertake a series of necessary improvements without a
court-approved plan to shed a chunk of its debt, a city
consultant testified on Friday at a U.S. Bankruptcy Court
Charles Moore, a senior managing director at restructuring
firm Conway MacKenzie Inc, said the six areas of Detroit’s
government that have been targeted for $1.7 billion of
reinvestment initiatives running through June 30, 2023, were
essential for the city to provide adequate levels of services to
residents and businesses.
DETROIT, Sept 4 (Reuters) – Revenue projections in Detroit’s
debt adjustment plan will be hard to achieve, but restructuring
initiatives will bring in new money and help make Detroit’s plan
feasible, Detroit’s chief financial officer said Thursday in the
city’s historic bankruptcy hearing.
John Hill, who was appointed the city’s CFO last November,
testified that the plan would eventually gain money for Detroit
as the restructuring initiatives bring about changes, including
higher collections of unpaid taxes. Hill was the first witness
called by the city of Detroit as it seeks a federal bankruptcy
judge’s endorsement of its financial restructuring plan.
DETROIT, Sept 4 (Reuters) – Detroit’s chief financial
officer took the stand on Thursday as the first witness in the
city’s historic bankruptcy hearing, testifying that while he
believed Detroit’s debt adjustment plan can be implemented, it
cannot be set in stone.
“Initially, we definitely believe the plan gives us a road
map to how we should be operating,” said John Hill, who was
appointed CFO last November.
DETROIT, Sept 3 (Reuters) – Detroit claimed on Wednesday
that its plan to adjust its debt and exit bankruptcy is feasible
and fair to creditors, but a bond insurance company contended
the plan calls for “historic levels of discrimination” among
Bruce Bennett, a Jones Day attorney representing Detroit,
wrapped up his three-hour opening statement by disputing
arguments from creditors who claim the city’s plan to adjust its
$18 billion in debt is inadequate and should be scrapped.
DETROIT, Sept 3 (Reuters) – A federal bankruptcy judge has
ordered Detroit and civil rights attorneys into two weeks of
confidential mediation over the city’s practice of shutting off
water to residents with unpaid bills.
Federal Bankruptcy Judge Steven Rhodes will announce on
Sept. 17 whether he will issue a temporary restraining order on
Detroit’s controversial attempt to reduce its $90 million
backlog of unpaid water bills, according to an order signed on
Tuesday and publicly released on Wednesday.
DETROIT (Reuters) – Detroit will not recover, and it may not survive as a major city if its debts are not significantly reduced during bankruptcy, a city attorney told a federal judge at the start of a critical phase of the case on Tuesday.
As Detroit’s state-appointed emergency manager Kevyn Orr looked on in the courtroom, Bruce Bennett, an attorney for the city, sought to convince Judge Steven Rhodes that Detroit’s 1,034-page plan to adjust $18 billion of debt would save the city.
DETROIT (Reuters) – The key hearing on the biggest municipal bankruptcy in U.S. history started on Tuesday in a federal courtroom, where teams of attorneys began laying out arguments over Detroit’s plan to adjust $18 billion of its debt.
Detroit made history nearly 14 months ago when it filed for bankruptcy. The confirmation hearing on the city’s plan to exit bankruptcy is now scheduled to stretch through Oct. 17.
By Karen Pierog
(Reuters) – A New York-based specialty finance group is ready to loan Detroit as much as $4 billion, double its previous offer, if the bankrupt city uses the masterpieces in its art museum as collateral, according to a new proposal that surfaced this week.
Art Capital Group, which offered to loan the city $2 billion earlier this year, doubled the offer based on a recent appraisal that determined the Detroit Institute of Arts’ (DIA) collection was worth more than $8 billion.