July 24, 2014
Bond Insurers Vow to Fight Detroit Financial Plan
Michael Cox READ TIME: 1 MIN.
Companies that insure Detroit's bonds are repeating their pledge to aggressively challenge the city's plan to get out of bankruptcy.
Results released Monday night show city workers and retirees voted in favor of pension cuts. But bond insurers say retirees are being given special treatment that's unfair to other creditors.
In statements released Tuesday, Syncora and Financial Guaranty Insurance said that their fight will continue at a trial starting Aug. 14. They stand to lose millions.
The state of Michigan, foundations and the Detroit Institute of Arts have pledged $816 million to prevent the sale of city-owned art and reinforce Detroit's sagging pension funds. The money wouldn't be available to other creditors.
Judge Steven Rhodes will hold a trial to determine if Detroit's overall bankruptcy plan is fair.
