Detroit reaches deal with Syncora; plan hearing halted for five days

By Kali Hays

New York, Sept. 10 – The City of Detroit’s ongoing plan of adjustment confirmation hearing has been adjourned until Sept. 15 as a result of an agreement reached with objecting creditor Syncora Guarantee Inc., according to a Tuesday order with the U.S. Bankruptcy Court for the Eastern District of Michigan.

The city and Syncora jointly requested an adjournment of the hearing until Sept. 12 to allow the parties two days “to address certain conditions and logistics” related to the agreement.

The parties also said that “if this agreement is finalized within this time period, it will profoundly alter the course of the proceeding and the litigation plans of the remaining parties,” according to the motion.

As previously reported, Syncora holds a $366 million claim against the city and under the current version of the plan could be responsible for paying off about $1.4 billion of bondholder insurance that Detroit has defaulted on.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.