Michigan

Detroit filed for Chapter 9 bankruptcy Thursday, a historic move that marks the largest municipal bankruptcy filing to date. It's also a first for Michigan, and the first time a state's largest city has filed.

Detroit's two retirement systems sued Michigan Gov. Rick Snyder and Detroit emergency manager Kevyn Orr, saying Detroit's "imminent" Chapter 9 bankruptcy would violate state constitutional protections.

Fitch Ratings said Tuesday it's continuing to monitor the $5.9 billion of Detroit water and sewer bonds, but noted that the debt enjoys strong legal protections in or outside of a Chapter 9 filing.

U.S. Bank filed papers Tuesday disputing Syncora Guarantee Inc.'s account of the bank's role in a court battle between the bond insurer and Detroit over the use of casino revenues.

In the sea of junk-rated Detroit debt trading for 30 to 40 cents on the dollar, the piece of the city's defaulted pension certificates that feature Berkshire Hathaway Assurance Corp. continue to see retail bids of nearly 90 cents on the dollar.

Detroit emergency manager Kevyn Orr has reportedly reached an agreement with counterparties on the city's interest-rate swaps that has the creditors taking a 25% haircut.

Michigan's emergency loan board Monday approved a move by Pontiac emergency manager to suspend the city's retiree health care payments for up to two years.

Detroit said in a Monday morning court filing that it had reached an important settlement with a creditor that renders moot an escalating dispute with bond insurer Syncora Guarantee Inc. over casino revenues.

Michigan Gov. Rick Snyder Monday tapped Detroit CFO Jack Martin to be the new emergency manager of the city's troubled school system.

Detroit bondholders may have a new worry after a judge ruled that Jefferson County, Ala., could have paid legal bills for its bankruptcy from cash that was going to pay warrant holders owed $3 billion.

Bondholders of the nearly $6 billion of Detroit water and sewer debt hold one of the strongest hands for recovery as Detroit emergency manager Kevyn Orr tries to restructure the city's massive debt load.

In the first formal push against Detroit emergency manager Kevyn Orr's restructuring plan, Ambac Assurance Corp. Monday called the plan harmful to the city's future and said it has hired an advisory firm.

Detroit sued Syncora Guarantee Inc. in state court Friday, accusing the bond insurer of blocking access to casino revenue and interfering with delicate negotiations over interest-rate swaps hedging pension certificates.

Once considered relatively isolated from Detroit's problems, its $6 billion of water and sewer debt have been been pushed into junk territory by two of the three major ratings agencies.

Michigan Gov. Rick Snyder Tuesday signed into law a pair of bills broadening state power over small school districts and appointed a review team to investigate the Pontiac School District.

Breaking a weeks-long silence, a spokesman for Michigan Gov. Rick Snyder told The Bond Buyer that the state supports Detroit's plan to default and treat its GO debt as unsecured. It answers a question that's been on the mind of the muni market since Kevyn Orr unveiled his controversial plan in June.

Michigan Gov. Rick Snyder appointed a former human resources director at the city of Pontiac to serve as emergency manager of Hamtramck, which now enters its second state takeover in less than 10 years.

After a massive restructuring of Pontiac, Mich., emergency manager Louis "Bud" Schimmel says he's ready to retire after tackling one last obstacle: the city's retiree health care debt.

Detroit's restructuring plan illustrates how unfunded pension and health care liabilities threaten bond insurers, Moody's Investors Service said in a comment Monday.

Detroit emergency manager Kevyn Orr ordered an inspection of all the city employee benefit programs for possible corruption or mismanagement.