Detroit bankruptcy

Detroit emergency manager Kevyn Orr Tuesday issued an order that gives the city's mayor control of the Detroit Water and Sewerage Department.

A settlement with Detroit's limited-tax general obligation bondholders that calls for a 34% recovery also gives the creditors a say in the city's effort to repudiate $1.4 billion of pension certificates, one of the most controversial aspects of the bankruptcy case.

The outcome of Detroit's high-profile bankruptcy case could influence how other distressed Michigan governments prioritize their own retirement obligations against other types of debt, Moody's Investors Service said.

Detroit's bankruptcy may prove relevant for current restructuring candidates like Puerto Rico, the City of Chicago, and several municipalities in California.

With the votes in on Detroit's plan to deal with its $18 billion of debt, the stage is set for confirmation hearings next month that will pit unhappy bondholders and bond insurers against employees and retirees who overwhelmingly endorsed the plan.

Despite significant obstacles, Detroit's proposed plan of adjustment to exit its Chapter 9 bankruptcy is feasible, according to Martha Kopacz, the municipal finance expert hired by the bankruptcy court to assess the plan.

Detroit’s retirees and employees endorsed the city’s proposed plan of adjustment while holders of the city’s limited tax general obligation bond holders and certificates of participation rejected it, according to the voting results released late Monday by the federal bankruptcy court.

Detroit's proposed plan of adjustment to deal with its $18 billion debt load is feasible, the municipal finance expert witness hired by the federal bankruptcy court to assess the plan believes.

The Detroit Institute of Arts has raised 80% of the $100 million it pledged to contribute to Detroit's underfunded pension debt.

One year after Detroit filed for bankruptcy, muni experts said the city's approach should set a precedent for how not to manage a distressed workout, and that they've learned to throw out many traditional assumptions and beliefs about the treatment of bond debt in Chapter 9.

The 6th Circuit Court of Appeals set an accelerated two-week schedule to consider bond insurer Syncora Guarantee's appeal of a key decision in Detroit's bankruptcy case.

Detroit's newest bondholder settlement calls for a 66% haircut for limited-tax general obligation bondholders, a deal that's severe but unsurprising given Detroit's credit, muni experts said.

Syncora lost a key appeal in the Detroit bankruptcy case, giving the city continued access to crucial casino revenues.

Detroit's settlement with its limited-tax general obligation bondholders would repay them 34 cents on the dollar, the lowest recovery rate reached in a deal so far in the case.

A new assessment of Detroit's art collection puts its price tag at up to $4.6 billion, significantly higher than the city's first valuation and more in line with bond insurers' estimates.

All creditors in the Detroit bankruptcy case must vote on the city's debt adjustment plan by Friday, a key vote that will set the stage for an August trial and the city's effort to exit Chapter 9 by early fall.

Continuing its quest for documents tied to the sale of $1.4 billion of certificates of participation, Detroit Friday said it would subpoena one of the banks as well as public finance attorneys involved with the 2005 transaction.

A federal appeals court judge advanced bond insurer Syncora Guarantee Inc.'s appeal of a key decision about casino tax revenue in the Detroit bankruptcy case, ordering a lower court to review the challenge by July 14.

At least two bond insurers in the Detroit bankruptcy case will now enjoy the exclusive right to vote on the city's bankruptcy exit plan in place of individual bondholders.

Detroit alerted the federal bankruptcy court Wednesday of plans to issue a subpoena to the Bond Buyer for information about the city's controversial $1.4 billion pension certificates of participation sale, and a bond insurer subpoenaed a trio of public finance professionals for depositions in their case.