DETROIT, Nov 7 (Reuters) – A U.S. judge on Friday confirmed
Detroit’s plan to adjust $18 billion of debt and exit the
biggest-ever municipal bankruptcy.
The ruling by U.S. Bankruptcy Court Judge Steven Rhodes, who
is overseeing the historic case, came more than two months after
the start of a hearing to determine whether the 1,165-page plan
was fair to creditors and feasible for the city to implement.
DETROIT (Reuters) – Detroit’s plan for exiting the largest municipal bankruptcy in U.S. history broke new ground by using land as a bargaining chip with creditors and could serve as a model for other distressed municipalities.
Few cities contain as much vacant realty as Detroit. The city leveraged that liability into settlements with two major creditors by giving them land and leases – and making it in their financial interest to help revitalize the city.
WASHINGTON, Nov 6 (Reuters) – U.S. securities regulators
have charged the Detroit suburb of Allen Park, Michigan, and two
of the city’s former leaders with fraud over a municipal bond
offering intended to finance a massive movie studio project.
On Thursday the Securities and Exchange Commission said the
city and officials, former Mayor Gary Burtka and ex-City
Administrator Eric Waidelich, settled without admitting or
denying the charges.
WASHINGTON (Reuters) – Units of 13 major Wall Street firms, including JP Morgan and UBS, improperly sold bonds from Puerto Rico’s landmark March junk deal to retail investors who may not have understood the debt’s riskiness, the U.S. Securities and Exchange Commission said on Monday.
The firms will pay penalties ranging from $54,000 to $130,000, without admitting or denying the regulator’s charges that they violated a new rule on minimum denominations for municipal bond sales. This is the first time the SEC has brought a case based on the rule, which prohibits dealers from selling bonds to individual buyers below a certain threshold amount.
DETROIT, Oct 27 (Reuters) – Detroit could only deal with its
fiscal woes, including a big public pension burden, by filing
for bankruptcy and tapping into the city’s one abundant asset,
land, to reach settlements with key creditors, an attorney said
Bruce Bennett, Detroit’s lead attorney at law firm Jones
Day, began closing arguments in the biggest-ever municipal
bankruptcy case, working to win federal court approval for the
city’s 1,165-page debt adjustment plan.
DETROIT (Reuters) – Closing arguments in the hearing on Detroit’s landmark bankruptcy are just days away, leaving odds and ends for the city, its creditors and U.S. Bankruptcy Judge Steven Rhodes to resolve.
After closing arguments, expected on Wednesday, Rhodes will have to determine if the city’s plan to adjust $18 billion in debt and obligations and exit the biggest-ever municipal bankruptcy is fair to creditors and feasible for the city to follow.
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.