Detroit bankruptcy

After a six-month delay to allow the market to digest Detroit's bankruptcy, Saginaw County, Mich. is bringing $52 million of pension obligation bonds to market Thursday.

Steven Rhodes, judge in the Detroit bankruptcy case, will rule Thursday afternoon on whether to accept or reject the city's controversial settlement with its interest-rate swap counterparties.

Mediators in Detroit's bankruptcy case unveiled a tentative plan created by a group of local and national foundations that have already raised $330M that could be used for some of the bankrupt city's unfunded pensions – as long as the city promises to preserve its storied art collection.

A coalition representing Detroit retirees sued in federal court to block the city from implementing health care changes that would shift older employees to Medicare and younger ones to the state-based health care exchange.

Detroit's negotiations this week with holders of the city's nearly $6 billion of water and sewer bonds went well enough that one investor said a settlement is likely.

Detroit emergency manager Kevyn Orr reversed a decision to close the bankrupt city's pension system for non-public safety employees and shifted it into a 401(k)-style defined contribution retirement plan.

A hearing on Detroit's interest-rate swaps and proposed borrowing was pushed back until Tuesday due to a massive winter storm in the Midwest.

Detroit emergency manager Kevyn Orr said he asked the Securities and Exchange Commission to investigate the city's interest-rate swaps amid "serious questions" about the legality of the financings.

As Detroit gears up to file its plan of adjustment this month in its historic bankruptcy case, the chief mediator in the case ordered the city Tuesday to meet with bondholders in a series of mediation sessions next week.

The mediators overseeing Detroit's bankruptcy case recommended that the bankruptcy judge approve a settlement between the city and its interest-rate swap counterparties, calling it a significant step.

Detroit emergency manager Kevyn Orr filed an order with the bankruptcy court outlining and defending the city's revised settlement with its interest-rate swap counterparties.

Detroit's pension funds Thursday asked a federal circuit court to allow an expedited appeal of the bankruptcy court's recent ruling that the city is eligible for Chapter 9 and that its pensions can be cut, saying the case has national implications that warrant a speedy review.

Attorneys for Detroit's pension funds said they will challenge a new settlement between the city and its interest-rate swap counterparties.

Bankrupt Detroit will shave about $65 million off its costs to terminate interest-rate swaps under a new settlement agreement reached with its bank counterparties the day of Christmas Eve.

A bond insurer and Detroit's two pension funds are among five appointees to the committee named to represent the interests of unsecured creditors as the city proceeds through Chapter 9.

Detroit's federal bankruptcy judge urged the appellate court to reject an appeal of his recent rulings on the city's eligibility for Chapter 9 and declined to recommend an expedited appeal process.

CHICAGO - Detroit told the bankruptcy court Friday it may sue its interest-rate swap counterparties without a revised settlement to terminate the swaps under more favorable terms. The warning raises the stakes on mediation.

Detroit's mayor-elect, Mike Duggan, will manage the bankrupt city's day-to-day operations under an agreement with the city's emergency manager, Kevyn Orr, that was announced Thursday.

Auction house Christie's valued bankrupt Detroit's art collection at between $454 million and $867 million in a final assessment turned over to city emergency manager Kevyn Orr this week.

CHICAGO – A federal bankruptcy court judge abruptly suspended hearings on Detroit's proposed $350 million debtor-in-possession financing and settlement with its interest-rate swap counterparties Wednesday and urged the city to use the time to renegotiate the swaps termination deal.