Detroit bankruptcy

The judge overseeing Detroit's bankruptcy case ordered the city to disclose more details of a proposed $120 million loan with Barclays, including financing terms and the use of proceeds.

The Detroit Water and Sewer Department plans to come to market in June with $150 million of sewer bonds — and possibly a restructuring of its entire $4 billion portfolio — in the midst of the city's tumultuous bankruptcy and talks to privatize the asset.

The counterparties to Detroit's interest-rate swaps mounted their first public defense of a controversial settlement with the city Friday, arguing that the derivatives are legally secured and warning that litigation would be costly and painful for Detroiters.

The bond insurers that wrap Detroit's unlimited-tax general obligation bonds have been ordered into a Monday mediation session with the city several weeks after the judge overseeing the case said he would issue a ruling on whether or not the city can treat the debt as unsecured.

Detroit has reportedly yet to finalize a crucial settlement with its interest-rate swap counterparties.

Michigan Gov. Rick Snyder told local reporters that he wants Detroit to reach an agreement with its retirees to help advance legislation that would appropriate $350 million in state funds for the city's unfunded pensions.

Detroit's bankruptcy proceedings are on hyper speed compared to San Bernardino's Chapter 9 bankruptcy.

A pair of bond insurers filed lawsuits this week challenging key aspects of Detroit's bankruptcy debt plan, litigation that could derail the city's goal of exiting by the fall.

Syncora is challenging Detroit's latest attempt to settle with its interest-rate swap counterparties, a day after FGIC filed a challenge to the city's lawsuit attempting to invalidate its pension certificates.

Bond insurer Financial Guaranty Insurance Company has asked the bankruptcy court overseeing Detroit's Chapter 9 to allow it to intervene in a city lawsuit that attempts to repudiate $1.4 billion of pension certificate debt.

Six months after first announcing a deal, bankrupt Detroit is still struggling to secure a key debtor-in-possession loan with Barclays.

Detroit's high-profile battle with its bondholders will likely have limited impact in the national market, as general obligation pledges vary widely across the country, Moody's Investors Service said in a new report.

The bankruptcy litigation surrounding Detroit's general obligation bonds is unlikely to have a broad legal impact on the meaning of the GO pledges in bonds nationwide, says Moody's Investors Service in a report.

U.S. Bankruptcy Judge Steven Rhodes pushed back by one month a trial date on the city's plan of debt adjustment after bond insurers and other creditors asked for more time to respond to the controversial plan.

Detroit in a court filing Thursday said it has reached agreement with Barclays Inc. for a $120 million debtor-in-possession financing.

Detroit Wednesday asked the bankruptcy court to set a March 20 date for a hearing on its latest settlement with its interest-rate swap counterparties, calling it key to the city's overall plan of debt adjustment.

Detroit has reached a new settlement with its interest-rate swap counterparties that could significantly boost its efforts to pursue a cramdown plan of adjustment if necessary.

Detroit is treating the bonds issued by the Downtown Development Authority as secured, though the DDA itself is expected to take a 80% haircut on an outstanding loan, Fitch Ratings noted in a comment.

Fitch Ratings downgraded more than $4 billion of Detroit Water and Sewerage Department debt to junk bond status Friday afternoon.

Detroit said creditors should have until June 9 to review and vote on the controversial debt plan it filed last week in bankruptcy court.