By COREY WILLIAMS
DETROIT (AP) – An attorney for one of Detroit’s creditors says the company believes the city can afford 75 cents on the dollar to settle its debt.
Syncora Guarantee attorney Marc Kieselstein came up with the figure after repeated demands from federal Judge Steven Rhodes during the bond insurer’s opening statement in Wednesday’s historic bankruptcy trial.
Syncora has said its claim with city is about $400 million. It says Detroit’s debt restructuring plan would pay some creditors less than 10 cents on the dollar.
Kieselstein told Rhodes that one way Detroit could raise the money for a larger settlement is to sell off “one or two pieces” in the Detroit Institute of Arts.
Detroit wants to cut $12 billion in unsecured debt to about $5 billion through its plan of adjustment.
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