Detroit issues revenue and refinancing bonds, closes tender purchase

By Caroline Salls

Pittsburgh, Sept. 4 – The City of Detroit issued 2014 revenue and revenue refinancing bonds and closed the purchase of tendered water and sewer department bonds on Thursday, according to a filing with the U.S. Bankruptcy Court for the Eastern District of Michigan.

As previously reported, as of the Aug. 21 tender expiration date, bondholders tendered $1,467,670,000 of bonds. The city accepted the tendered bonds for purchase or optional redemption on Aug. 22.

The revenue and revenue refinancing bonds were issued to fund the purchase or optional redemption of the tendered bonds.

In connection with the issuance and closing, claims in class 1A of Detroit’s plan of adjustment are unimpaired and will be reinstated on the plan effective date.

In addition, water and sewer bond-related objections to the plan were withdrawn.

The city’s plan confirmation hearing began on Tuesday.

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

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