Caitlin Devitt

Detroit and Syncora Guarantee Inc. will spend the next few days working to finalize a major agreement that would speed up the bankruptcy, but important questions remain in the case, muni market experts said.

Detroit's historic bankruptcy case saw a major breakthrough late Tuesday when the city and its strongest opponent, bond insurer Syncora Guarantee, announced they had reached an agreement in principal.

Two-term Indiana Treasurer Richard Mourdock resigned four months before the end of his term, prompting Gov. Mike Pence to appoint long-time public finance figure Dan Huge as interim replacement.

Detroit Mayor Mike Duggan said emergency manager Keyvn Orr will likely serve as a consultant to the city's bankruptcy after his tenure as emergency manager expires at the end of the month.

Detroit has reached a deal to spin its troubled Water and Sewerage Department to a new regional authority, that allows up to $800 million of new money bonds for capital improvements to assets located in the city limits.

Detroit entered the second week of the confirmation trial for its bankruptcy exit plan Monday, calling witnesses who testified to the city's desperate need for the $1.5 billion of capital investments featured in the plan.

An affordable-housing project for elderly renters near Dayton, Ohio marks the first use of Freddie Mac's new direct purchase tax-exempt note program that allows borrowers to privately place their debt with Freddie.

Detroit's first witness in its bankruptcy trial, CFO John Hill, testified that the city's confirmation plan would mean more money for the struggling city but that meeting some of the revenue targets could be difficult.

Three Detroit hospitals announced that they have closed a merger that creates a $3.8 billion system that's the largest health care provider in southeast Michigan.

The three counties around Detroit objected to the city's bankruptcy exit plan, arguing that the proposed treatment of the massive Detroit Water and Sewerage Department would spell catastrophe for the aging system.

Under questioning from the federal judge overseeing Detroit's bankruptcy, bond insurer Syncora Guarantee Inc. said it would settle a year-long battle with the city for 75 cents on the dollar.

Detroit's attorneys launched opening statements on the first day of a historic trial on the city's bankruptcy exit plan, arguing that the city may not survive without the debt adjustment plan and defending a deal to raise money backed by the art collection.

Barring any last-minute settlements with bond insurers, Detroit will begin defending its plan to restructure debt and begin to rebuild the battered city.

Detroit will refinance a chunk of its water and sewer debt as part of a tender offer settlement with bondholders.

Michigan deputy treasurer Wayne Workman, who joined the state last year after a long stint as its financial advisor at Robert W. Baird & Co., has been appointed interim director of the state housing authority.

Fitch Ratings said Detroit's offer to holders of $5.2 billion of water and sewer bonds to tender their debt as part of a bankruptcy settlement does not constitute a distressed debt exchange, an analysis that could bode well for ratings the planned refinancing of the debt.

A web site that allows interested parties to watch Detroit water and sewer muni bond tenders in near-real time is being used for the first time in the municipal bond market.

Detroit has asked the federal judge in charge of its Chapter 9 to consider forcing bond insurer Syncora Guarantee to issue an apology for suggesting that federal mediators have tainted the bankruptcy process.

Detroit Public Schools will move forward with a plan to issue $111 million of state aid notes as well as an updated deficit elimination plan that calls for 10% pay cuts and the closure of up to 24 schools.

Bond insurer Syncora Guarantee challenged Detroit's settlement with its unlimited-tax general obligation bondholders in court Tuesday, arguing that it means Detroiters will continue to pay taxes on a levy that they did not approve on the original ballot.