Michigan

The Detroit bankruptcy judge Wednesday will consider a motion by bond insurers and other major creditors asking for a formal role in the assessment of the city's art collection and ways to monetize it.

Bond insurer Syncora Guarantee Inc. asked the bankruptcy court overseeing Detroit's Chapter 9 case to delay the city's effort to secure a $120 million debtor-in-possession financing, saying the loan may need to be restructured in light of the court's rejection of a related swaps settlement.

Bankruptcy Judge Steven Rhodes rejected a $165 million settlement with Detroit's interest-rate swap counterparties, delivering a major blow to the swap counterparties and a victory for the city's bond insurers, retirees, and pension funds.

Michigan Gov. Rick Snyder has reportedly asked lawmakers to come up with $350 million to match private foundations' commitment to support Detroit's pension funds and art collection.

Judge Steven Rhodes will rule Thursday afternoon on Detroit's interest-rate swap settlement in one of the most closely watched decisions of the city's historic bankruptcy case so far.

After a six-month delay to allow the market to digest Detroit's bankruptcy, Saginaw County, Mich. is bringing $52 million of pension obligation bonds to market Thursday.

Steven Rhodes, judge in the Detroit bankruptcy case, will rule Thursday afternoon on whether to accept or reject the city's controversial settlement with its interest-rate swap counterparties.

Mediators in Detroit's bankruptcy case unveiled a tentative plan created by a group of local and national foundations that have already raised $330M that could be used for some of the bankrupt city's unfunded pensions – as long as the city promises to preserve its storied art collection.

Michigan expects to collect $541 million more than it had expected over the next two years, economists and state officials said Friday at the state's twice-annual revenue-estimating conference.

A coalition representing Detroit retirees sued in federal court to block the city from implementing health care changes that would shift older employees to Medicare and younger ones to the state-based health care exchange.

Detroit's negotiations this week with holders of the city's nearly $6 billion of water and sewer bonds went well enough that one investor said a settlement is likely.

The Michigan city of Benton Harbor, which is under emergency management, hopes to win a $2.3 million loan from the state to erase its deficit.

Detroit emergency manager Kevyn Orr reversed a decision to close the bankrupt city's pension system for non-public safety employees and shifted it into a 401(k)-style defined contribution retirement plan.

A hearing on Detroit's interest-rate swaps and proposed borrowing was pushed back until Tuesday due to a massive winter storm in the Midwest.

Detroit emergency manager Kevyn Orr said he asked the Securities and Exchange Commission to investigate the city's interest-rate swaps amid "serious questions" about the legality of the financings.

Bond insurer Ambac Assurance Corp. urged the federal judge overseeing the Detroit bankruptcy to reject the city's latest swap-termination deal, saying the terms are too rich in light of legal questions tied to the original financings.

As Detroit gears up to file its plan of adjustment this month in its historic bankruptcy case, the chief mediator in the case ordered the city Tuesday to meet with bondholders in a series of mediation sessions next week.

The mediators overseeing Detroit's bankruptcy case recommended that the bankruptcy judge approve a settlement between the city and its interest-rate swap counterparties, calling it a significant step.

Detroit emergency manager Kevyn Orr filed an order with the bankruptcy court outlining and defending the city's revised settlement with its interest-rate swap counterparties.

Detroit's pension funds Thursday asked a federal circuit court to allow an expedited appeal of the bankruptcy court's recent ruling that the city is eligible for Chapter 9 and that its pensions can be cut, saying the case has national implications that warrant a speedy review.