Detroit hearing continuation request on hold until next plan filing

By Caroline Salls

Pittsburgh, July 23 – The motion by City of Detroit creditors Syncora Guarantee Inc. and Syncora Capital Insurance Inc. to continue the city’s plan of adjustment confirmation hearing will be held in abeyance, according to an order filed Wednesday in the U.S. Bankruptcy Court for the Eastern District of Michigan.

Judge Steven Rhodes said it will be more appropriate to resolve Syncora’s motion after the city files its next amended plan.

As a result, the continuation motion will be held in abeyance until further order of the court.

As previously reported, the Syncora entities requested a 45-day continuation of the plan hearing, asking that the hearing be moved to Sept. 29 from Aug. 14.

According to the motion, the city has failed to provide Syncora with “significant plan-related documents which are essential to evaluation of the plan,” and also failed to comply with the June 20 document production deadline, supplying Syncora with “thousands of pages of documents” after the court-ordered deadline.

Detroit objected to Syncora’s motion, claiming that the creditors have not identified any “extraordinary cause” for a continuation as required by the court’s scheduling order and that Syncora has been informed of the state of all negotiations and missing documentation.

Detroit filed bankruptcy on July 18, 2013 under Chapter 9 case number 13-53846.

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