Detroit bankruptcy

Michigan Gov. Rick Snyder Friday signed a package of bills aimed at resolving Detroit's Chapter 9 case at a triumphant ceremony where the governor and others proclaimed the end is in sight for the historic bankruptcy.

As Detroit released preliminary bond documents for next week's $185 million streetlight sale, Fitch Ratings assigned a BBB-plus to the borrowing, saying it believes the utility tax revenues pledged to the bonds are not at risk in the city's bankruptcy.

Michigan Gov. Rick Snyder knew a $195 million contribution to Detroit's bankruptcy could concern analysts, but believes it is important, a spokesperson said after Standard & Poor's revised its outlook.

S&P revises Michigan's outlook down to stable from positive, citing soft revenues as well as its recent contribution to Detroit's bankruptcy.

Structural protections and a yield-hungry market are apt to boost interest in bonds for the Detroit Public Lighting Authority, despite the city's ongoing Chapter 9 bankruptcy.

Fitch Ratings said Monday it has withdrawn its D ratings on most of Detroit's debt, saying there's no reason to maintain a rating on defaulted bonds.

Two bond insurers that wrap Detroit water and sewer bonds have told bondholders to reject Detroit's bankruptcy plan of confirmation, even as the insurers fight for the exclusive right to vote on the plan.

In a major development, Detroit bankruptcy mediators announced a settlement on the treatment of the city's limited tax general obligation bonds. Terms were not immediately disclosed.

The Michigan Legislature adjourned for the summer on June 12 after failing to reach an agreement on new transportation funding despite weeks of intensive effort and support from business and labor groups and Gov. Rick Snyder.

Two more foundations have pledged $13 million to Detroit's pensions via the Detroit Institute of Arts in a bid to protect the museum's prized art collection as part of a grand bargain worked out by federal court mediators.

Bond insurer Syncora Guarantee said in a court filing that Detroit, as well as federal court mediators and even the bankruptcy judge himself have unfairly singled out the insurer as part of an anti-Wall Street public relations campaign.

Detroit officials will meet Thursday with Ambac Assurance Corp. and Blackrock Financial in a court-ordered mediation session to try to reach a settlement after months of failed talks.

Detroit's bankruptcy court judge has delayed the scheduled start date for hearings on the city's confirmation plan by three weeks to Aug. 14.

Detroit's hometown automakers pledged $26 million towards the Detroit Institute of Arts' $100 million share of the so-called "grand bargain" that's a key part of the city's plan to emerge from bankruptcy.

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.

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.