Another Delay in Detroit’s Bankruptcy Trial?
U. S. Bankruptcy Judge Steven Rhodes already issued a delay to enable Detroit officials to work out the details of a proposed settlement with creditors, but now others are looking for even more time.
The Detroit News reports that lawyers for creditors including Financial Guaranty Insurance Company are asking now for a one-week delay so that they may identify and prepare new expert testimony.
Rhodes, who delayed proceedings for three-days last week, was set to continue hearing testimony today. He may ruled on the additional time request, though, instead of hearing more from witnesses.
The delay, according to the article, was to let Detroit finalize a deal with bond insurer Syncora Guarantee Inc. and to strike a deal with FGIC, the insurer of better than a billion dollars in pension debt the city is looking to eliminate through the bankruptcy procedure.
Syncora has agreed to take the lead in questioning the remaining witnesses in the case, which could include business owners Dan Gilbert and Roger Penske and Detroit's Emergency Manager Kevyn Orr.
The News is reporting that any deal could force the Detroit City Council and Mayor Mike Duggan to fast-track approval. EM Orr is set to leave his post at month's end, although his contract could be extended by the City.
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