DETROIT (Reuters) – Detroit relies on antiquated and dilapidated information technology for basic city administration, which puts citizens’ safety at risk, makes simple administrative tasks impossible, and creates opportunities for security breaches, the city’s information officer testified at a bankruptcy hearing on Monday.
The second week of the landmark trial began with supporters of the city’s plan for paring debt and exiting the largest-ever municipal bankruptcy making a case the city urgently needs critical improvements and a means to pay for them in order to fully function.
WASHINGTON, Aug 14 (Reuters) – Traders slammed on the brakes
in the U.S. municipal bond market during the second quarter of
2014, with the amount of debt changing hands down more than 10
percent from a year earlier, Municipal Securities Rulemaking
Board data released on Thursday showed.
Volume fell 11.8 percent to $739 billion in the quarter from
$838 billion in the second quarter of 2013. The number of trades
dropped 17.6 percent to 2.24 million from 2.72 million in the
same period a year earlier, according to the MSRB, which
collects all trading data through its Electronic Municipal
Market Access platform.
By Lisa Lambert
(Reuters) – U.S. Bankruptcy Judge Steven Rhodes on Wednesday pushed the start of the trial on Detroit’s exit from the largest municipal bankruptcy in U.S. history to Aug. 29 from Aug. 21, with opening statements scheduled for the following Tuesday, Sept. 2.
The first day of the trial, which falls on the Friday before the Labor Day federal holiday, will address objections from creditors who do not have lawyers.
(Reuters) – A federal judge could once again push back the start date for the trial on Detroit’s exit from the largest municipal bankruptcy in U.S. history after some creditors said on Tuesday a possible settlement is snarling key components of the restructuring plan.
The complicated settlement rests on a tender offer for $5.2 billion of the city’s water and sewer revenue bonds. The deadline for bondholders to tender their debt voluntarily for repurchase is Aug. 21, the same day the trial is to begin, with the final settlement possibly becoming firm weeks later, in the middle of the proceeding.
WASHINGTON, Aug 11 (Reuters) – The U.S. Securities and
Exchange Commission said on Monday it has charged Kansas with
fraud for not properly disclosing funding problems with its
public pension when it held bond offerings in 2009 and 2010.
It marks the third time the federal regulator has taken
action against a state for violating municipal bond disclosure
WASHINGTON, Aug 7 (Reuters) – Demand for U.S. municipal
bonds has remained strong throughout the summer, a key
investment season, with municipal bond funds posting $16.6
million in net inflows for the week ended Aug. 6, according to
That followed net inflows of $418.6 million and $686.2
million the previous two weeks and brought the four-week moving
average to inflows of $319.8 million, according to Lipper, a
Thomson Reuters company.
WASHINGTON, Aug 6 (Reuters) – The U.S. Court of Appeals for
the Fourth Circuit upheld a major reform made to Baltimore’s
police and firefighter pension plan on Wednesday, shedding light
on how judges may view the recent raft of changes in public
retirement funds around the country.
The court vacated a previous decision that the reform had
violated the U.S. Constitution’s contract clause, and also
decided the change was permissible under Maryland’s state
WASHINGTON, July 28 (Reuters) – One of the biggest hold-out
creditors in Detroit’s bankruptcy will argue next month for a
dismissal of the historic case to lead to more equitable
treatment of all the city’s creditors, according to a report
obtained by Reuters on Monday.
Detroit’s plan to adjust $18 billion of debt has been
approved by most, but not all, of the city’s unsecured
creditors, bringing to center stage the possibility of a ‘cram
down,’ where the plan could be imposed on objecting creditors if
U.S. Bankruptcy Judge Steven Rhodes determines it is fair and
July 25 (Reuters) – Detroit released a revised debt
adjustment plan on Friday that details the role of a
post-bankruptcy monitor and sets up a reserve fund to possibly
enhance recoveries for certain creditors.
The fifth revision of the plan filed in U.S. Bankruptcy
Court creates a litigation trust related to Detroit’s lawsuit
seeking to void $1.45 billion of pension certificates of
participation (COPs) sold in 2005 and 2006.
July 25 (Reuters) – Detroit could be on the fast track to
complete the final, crucial phase of its historic bankruptcy
case, as settlements with key creditors line up and city workers
and retirees demonstrate overwhelming support for cost-saving
retirement benefit changes.
While a small, hard-core group of creditors continues to
hold out for a better deal, the support among workers and
retirees may help push through the city’s plan to adjust $18
billion of debt and exit the biggest Chapter 9 municipal
bankruptcy in U.S. history. It has moved the possibility of a
“cram down,” where a bankruptcy plan is imposed on objecting
creditors, to center stage.