Michigan

Detroit's move to secure debtor-in-possession financing marks a first for Chapter 9, one that, if successful, could pave the way for other bankrupt or cash-strapped cities, municipal bond experts said.

Gov. Rick Snyder Tuesday tapped former insurance executive R. Kevin Clinton as Michigan treasurer, a job that includes oversight of financially troubled communities such as Detroit.

Richard Baird, a top advisor to Michigan Gov. Rick Snyder, said he had considered trying to push for legislation to provide some protection for Detroit's low-income pensioners.

Outgoing Michigan Treasurer Andy Dillon outlined Detroit's descent into bankruptcy in a deposition ahead of hearings on whether the city is eligible to enter into Chapter 9.

In a first of its kind deal, Detroit has secured debtor-in-possession financing, a $350 million loan from Barclays that is backed by a pledge of income tax and casino revenues.

Michigan treasurer Andy Dillon is stepping down after months of negative headlines over a messy divorce and other issues that he said were becoming a distraction to the state.

Chapter 9 is supposed to make it easier for a struggling municipality to borrow, but the decisions made so far by Detroit’s leaders may have the opposite effect, bankruptcy expert James Spiotto said Friday at the Bond Dealers of America conference here.

Detroit's historic bankruptcy filing may lead to precedent-setting decisions on the treatment of general obligation bonds and other debt, though it has not meant big changes in daily investment strategy so far, according to a pair of market participants at the Bond Dealers of America conference.

Syncora Guarantee, Inc., the bond insurer that wraps some of Detroit's pension certificates, Thursday filed an appeal to Bankruptcy Judge Steven Rhodes' ruling that blocks the insurer's ability to freeze the city's casino revenue.

Former Detroit Mayor Kwame Kilpatrick was sentenced Thursday to 28 years in federal prison for running a criminal enterprise to enrich himself and his friends during the six years he was mayor of the struggling city.

A Detroit charter school defaulted on its Oct. 1 debt payment despite carrying a pledge of state aid, an intercept feature, and other protections designed to enhance bondholder security.

Michigan Gov. Rick Snyder, after giving a rare deposition related to Detroit's bankruptcy case, issued a statement saying the Chapter 9 filing was a difficult but necessary decision.

Michigan Gov. Rick Snyder will be questioned under oath Wednesday about the decisions leading up to Detroit's historic bankruptcy filing.

Catholic Health East won its second upgrade in as many weeks after its merger with Michigan-based Trinity Health as the new system prepares to come to market with $305 million of bonds.

A lot of work needs to be done in Detroit, but the city has a great deal of potential, Michigan State Treasurer Andy Dillon said.

The resolution of Detroit's obligations in its Chapter 9 bankruptcy stands to shape the municipal bond market for years, the Federal Reserve Bank of Chicago concludes in a new report.

The city of Allen Park in Michigan is demonstrating a potential path for working through municipal financial stress by addressing issues relatively early on and by gaining important support from residents and the banking community.

Detroit's long-term revival depends on the ability to access the capital markets, which requires fair treatment of its bondholders in bankruptcy, said bankruptcy expert James Spiotto.

Detroit Emergency Manager Kevyn Orr said he is considering several ways to wring cash out of the Detroit Institute of Art's collection.

Bankruptcy Judge Steven Rhodes agreed to briefly lift the automatic stay on Detroit's bankruptcy temporarily to allow a state judge to issue an opinion on a related '13th check' pension dispute.