DETROIT (Reuters) – A federal judge has put a landmark trial on Detroit’s plan to exit bankruptcy on hold until Monday, as the city neared a deal with bond insurer Syncora Guarantee Inc, one of its most formidable hold-out creditors.
Syncora had argued it had been short-changed compared to other creditors. If approved, the deal will see Syncora drop its objection to the restructuring and the trial – which is studying the feasibility of Detroit’s plan to exit bankruptcy – could get a swift approval from U.S. Bankruptcy Judge Steven Rhodes.
DETROIT (Reuters) – A federal judge on Wednesday put the landmark trial on Detroit’s plan to exit bankruptcy on hold until Monday, as the city neared a deal with one of its most formidable hold-out creditors.
Bond insurer Syncora Guarantee Inc and the city, after reaching an agreement in principle, requested late on Tuesday that the trial be delayed until Friday.
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 (Reuters) – Detroit reached a deal with three Michigan counties over regional water and sewer services that could drop the counties as objectors to the city’s plan to adjust its debt and exit bankruptcy, officials announced on Tuesday.
The deal between Detroit and Oakland, Wayne and Macomb counties creates a regional water and sewer authority, but allows the city to maintain control of its local system, Mayor Mike Duggan said at a news conference. It has the support of Michigan Governor Rick Snyder and the city’s state-appointed emergency manager Kevyn Orr, he added.
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.