Detroit and bond insurer Syncora finished the deal announced last Tuesday to settle over $400 million in claims.
A judge has suspended Detroit’s bankruptcy trial until Monday to give the city more time to work out details of a settlement with a major creditor.
Under Michigan state law, Kevyn Orr has the power to veto Detroit City Council’s vote and go ahead with the $1.4 million sale.
The joint filing by the city and bond insurer Syncora Guarantee said that they “have reached an agreement in principle” to settle the company’s $400 million claim in the nation’s largest-ever municipal bankruptcy case.
“All the revenue sources creditors can reach and are permitted to reach are exhausted,” Bennett told Judge Steven Rhodes.
Syncora Guarantee said in a court filing that the plan put together by state-appointed emergency manager Kevyn Orr and attorneys hired by the city is unfair.
Kevyn Orr is moving ahead with a plan to privatize the city’s parking department despite the City Council’s rejection of the proposal.
Mayor Mike Duggan is getting more control over city operations — including the embattled water department.
A judge still must hold a trial to determine if Detroit’s overall bankruptcy plan is fair and feasible, but support from retirees is vital.
More than 30,000 retirees and current and former workers were eligible to vote on pension changes.