DETROIT (Reuters) – U.S. Bankruptcy Judge Steven Rhodes asked pointed questions on Friday about how Detroit will fare after it exits its historic bankruptcy, expressing concerns about a commission intended to oversee city finances and a settlement with Syncora Guarantee Inc.
Detroit’s state-appointed emergency manager Kevyn Orr, on the witness stand for a third day at the hearing on the city’s bankruptcy plan, told Rhodes the presence of the mayor and city council president on the nine-member financial review commission created under Michigan law should not compromise its mission.
DETROIT, Oct 2 (Reuters) – Without a series of settlements,
Detroit would be facing years of costly litigation from
creditors and others that the city had no guarantee of winning,
Kevyn Orr, Detroit’s emergency manager, said on Thursday.
Orr, on the stand for a second day at a federal court, also
defended Detroit’s 1,111-page bankruptcy plan, saying it was
crafted in good faith and it provides a framework and resources
for the city’s renaissance.
DETROIT, Oct 1 (Reuters) – When Kevyn Orr became Detroit’s
emergency manager 18 months ago, he sparked mistrust among
residents and even created the possibility of civil unrest, he
testified on Monday.
Orr, a corporate bankruptcy attorney tapped by Michigan’s
Republican Governor Rick Snyder in March 2013 to turn around
Detroit’s financial problems, said civil unrest fanned by “some
elements” was a real concern as residents worried he would sell
off city assets and “carry out the ill-will of Governor Snyder.”
DETROIT (Reuters) – Detroit’s controversial sale of $1.4 billion of pension debt, which has become one of the biggest disputes in the city’s historic bankruptcy case, involved risks known to all the parties in the transaction, an attorney for the city said on Wednesday.
Geoffrey Stewart, a Jones Day attorney, said bond insurers and investors were not misled about the legality of the certificates of participation (COPs) Detroit sold in 2005 and 2006 to raise money for its unfunded pension liability.
DETROIT, Oct 1 (Reuters) – Detroit needs to eradicate
blighted properties and keep its art collection in order to
thrive once it exits bankruptcy, a billionaire business leader
told the city’s bankruptcy trial on Wednesday.
“Blight is like a cancer. Blight grows,” Dan Gilbert,
founder of Detroit-based mortgage lender Quicken Loans, said
after taking the stand in the historic bankruptcy case.
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.