CHICAGO - In a deal that may mark Berkshire Hathaway Assurance Corp.'s first primary market appearance, Detroit this week will begin restructuring nearly $800 million of insured variable-rate water and sewage revenue bonds in a complex transaction forged under mounting pressure posed by the potential loss of liquidity facilities.

In its first bond transaction since late 2006, the city beginning on Thursday will remarket roughly $385 million of sewage revenue bonds in a fixed-rate mode. The mode conversion is permitted under the bonds' original covenants. The city will follow up on May 8 with the conversion of another $385 million of water revenue bonds.

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