Midwest

Michigan legislation that raises money for Detroit's pensions marks a "lost opportunity" for bondholders and reflects ongoing tensions between bond and pension recoveries in the bankrupt city, Moody's Investors Service said.

The Detroit City Council Thursday approved the transfer of the city's art collection to a charitable trust, a key piece of the so-called grand bargain that holds together the city's bankruptcy exit plan.

The trustee for the bondholder-owned St. Louis convention center hotel complex plans to distribute on June 20 $32 million in funds to holders of $98 million in bonds, most of it coming from the newly-closed sale of the hotel.

Holders of Detroit's bonds want the bankruptcy judge to consider key questions of whether the city's treatment of its bond debt is legal at a main confirmation trial this summer instead of a one-day hearing set for later this month.

Calling it a historic day in Michigan, Gov. Rick Snyder promised speedy approval of a package of bills aimed at resolving Detroit's bankruptcy with a state contribution to the city's pensions funds.

A group of creditors led by bond insurers asked the federal judge overseeing Detroit's Chapter 9 bankruptcy to delay the confirmation trial by nearly two months, saying the city has failed to turn over key documents in a timely way.

Calling it a historic day in Michigan, Gov. Rick Snyder promised speedy approval of a package of bills aimed at resolving Detroit's bankruptcy with a state contribution to the city's pensions funds.

The Chicago Park District is headed into the market with a $208 million new-money, refunding, and restructuring sale that helps lay the ground work for covering higher future pension contributions.

Two more Ohio school districts have disclosed they are authorized to redeem BABs they issued in 2010 because of reduced subsidy payments due to sequestration.

The Illinois General Assembly's failure to extend the 2011 income tax hike ahead of its partial expiration next year could negatively pressure the state's already weak credit rating, Moody's Investors Service warned.