Another Hurdle Jumped in Detroit’s Road to Recovery
The effort to get approval from a federal judge on a bankruptcy recovery plan for the City of Detroit may have just gotten a boost.
Detroit officials reportedly came to "an agreement in principle" with bond insurer Syncora Guarantee late Tuesday to settle the company's$400 million claim against the city. Most of the others involved in the settlement--including retirees--have already given the green light for the deal.
MLive.com is reporting today that the deal with Syncora would pay the key creditor 26-cents on the dollar. Syncora "was" looking at as little as 6-cents on the dollar.
It's not a done deal yet, though.
"Syncora and the City have reached an agreement in principle and need 48-hours to address certain conditions and logistics," the lawyers wrote in an adjournment motion.
Financial Guaranty Insurance Company and those in Wayne, Oakland and Macomb counties are also protesting the offer. Movement, though, appears to have made with getting the counties on board.
The plan would reduce Detroit's overall debt from $18 billion to $11 billion. It would also reinvest money in city services and infrastructure, according to the article.
The Detroit News is also quoting unnamed sources that the deal could give Snycora even more to agree to the deal.
The trial over whether the offer from Detroit is reasonable is set to continue on Friday.
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