DETROIT (Reuters) – A settlement between Detroit and its last major holdout creditor, Financial Guaranty Insurance Co [FGIC.UL], resolves all issues involving the city’s outstanding pension debt, an attorney for the city said on Thursday.
Corinne Ball, an attorney at law firm Jones Day, told U.S. Bankruptcy Court Judge Steven Rhodes that the settlement includes an option for FGIC to develop the Joe Louis Arena and parking garage for a mixed-use project, including a hotel.
DETROIT, Oct 9 (Reuters) – Mediation for the last, and
potentially one of the biggest, settlements in Detroit’s
historic bankruptcy case has moved to New York City, a Detroit
spokesman said on Thursday, amid a newspaper report that a
potential deal with Financial Guaranty Insurance Co is
still days away.
Bond insurer FGIC is the last major objector to the
largest-ever municipal bankruptcy, with $1.1 billion on the line
from guaranteeing payments on city pension debt. Nearly a month
ago, Detroit struck a deal with another bond insurer, Syncora
Guarantee Inc, which included a financial recovery of 13.7 cents
on the dollar and a bevy of real estate transactions
encompassing a central parking garage, development options and a
lease for part of a tunnel connecting the city to Canada.
DETROIT, Oct 6 (Reuters) – Detroit may take years before
fully functioning as a city, its mayor said on Monday as he gave
a tepid blessing to the plan for ending the city’s historic
Mayor Mike Duggan was the last witness called by Detroit’s
attorneys, who then rested the city’s case in a U.S. Bankruptcy
Court hearing on the plan to adjust $18 billion of debt.
WASHINGTON, Oct 1 (Reuters) – Bank of America Merrill Lynch
remained the top senior underwriter of U.S. municipal
debt in the first nine months of 2014, with 262 deals totaling
$28.77 billion, Thomson Reuters data released on Wednesday
That represented more than 13 percent of sales in a year in
which issuance has shrunk. Bank of America, which was also top
underwriter in 2013, was followed by Citi, which had 264
deals totaling $24.35 billion in the first nine months of 2014.
DETROIT, Sept 30 (Reuters) – Detroit should be able to
access capital markets and borrow at a rate of around 5 percent
after it exits bankruptcy, as long as its tax revenue remains
stable, a city consultant said on Tuesday.
But even as Kenneth Buckfire, president of restructuring
firm Miller Buckfire & Co, testified about the factors that will
help Detroit woo investors, he said the city will have to
educate the municipal bond market about the “New Detroit,” once
it exits the largest-ever municipal bankruptcy.
DETROIT (Reuters) – U.S. Bankruptcy Judge Steven Rhodes ruled on Monday that Detroit can continue shutting off water service to non-paying customers, saying his court does not have jurisdiction over the issue and that suspending disconnections for six months could hurt the city’s finances.
“Detroit cannot afford any revenue slippages,” the judge said, before resuming his ongoing hearing on Detroit’s plan to exit the biggest-ever municipal bankruptcy.
DETROIT, Sept 25 (Reuters) – The Detroit City Council
unanimously approved a resolution on Thursday that would keep a
state-appointed emergency manager in control of the city’s
historic bankruptcy case, while returning city governing powers
to elected officials.
Shortly after the vote, Mayor Mike Duggan signed a letter,
informing Michigan Governor Rick Snyder of his approval of the
action, which followed three days of closed-door meetings.
DETROIT, Sept 22 (Reuters) – A federal bankruptcy judge on
Monday heard testimony from low-income families in Detroit who
say they suffered hardships when the city cut off their water
with no warning and are suing to prevent such shutoffs from
U.S. Bankruptcy Judge Steven Rhodes – currently overseeing
Detroit’s historic bankruptcy case – is hearing arguments Monday
and Tuesday before deciding whether to issue a six-month
injunction against water cutoffs. The larger hearing to approve
Detroit’s plan for exiting bankruptcy is on hold for the week
and will reconvene on Sept. 29.
DETROIT, Sept 19 (Reuters) – The Detroit City Council on
Friday approved the creation of a regional water authority,
pushing forward an integral part of the city’s plan to exit the
biggest-ever municipal bankruptcy.
A deal Detroit reached last week with Oakland, Wayne and
Macomb counties creates a regional water and sewer authority,
but allows Detroit to maintain control of its local system. The
authority must now be approved by at least one of the counties.
DETROIT (Reuters) – The Detroit Institute of Arts is prepared to sue to prevent the sale of its collection if Detroit’s plan for exiting bankruptcy is not approved, the museum’s chief operating officer told U.S. Bankruptcy Court on Thursday.
When Detroit filed for the largest-ever U.S. municipal bankruptcy 14 months ago, the museum began preparing for possible litigation to keep its art works from being sold to pay city creditors, museum COO Annmarie Erickson told the court.