Midwest

Detroit filed a flurry of court papers late Thursday in support of its historic Chapter 9 request, including an outline of creditor negotiations that says the lack of representation and organization among creditors, including bondholders, made it impossible to reach settlements.

Detroit's bankruptcy filing on Thursday was not unexpected, but market participants say its impact is hard to gauge and that it has negative implications for the market.

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.

Moody's socked $11.5 billion of Chicago debt with multi-notch downgrades over its mounting pension woes and warned of a potential further hit down the road as a dramatic contribution spike looms.

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.

Ill. Gov. Pat Quinn signed legislation Wednesday that authorizes spending on the $2.7 billion third phase of projects under the state's ongoing $31 billion capital program.

The trustee for $27 million of defaulted lease revenue bonds backed by a Minnesota city to finance a sports complex wants to unload the facility but it doesn't expect to make bondholders whole through the sale.

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.