Wednesday, 10:45 a.m. -- The bankruptcy trial to finalize the restructuring of Detroit's finances has been adjourned until Monday morning so the city and creditor Syncora can have time to iron out a breakthrough deal reached Tuesday night, the Detroit Free Press reports.
Syncora is one of two major holdouts in the bankruptcy proceedings
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From Tuesday night
Syncora, the combative creditor that continuously raised objections about Detroit's bankruptcy, and was holding out on settling with the city, reached a last-minute deal Tuesday, the Detroit News reported.
Robert Snell of the Detroit News reports that the deal gives the firm millions, control of a city parking garage and a 20-year lease extension of the Detroit-Windsor Tunnel.
The deal could speed up the Detroit bankruptcy trial currently underway, the News reported.
Syncora is a bond insurer that backed $400 million in city debt. Up until now, it had been asked to write off at least 90 percent of that obligation.
Snell writes:
Bermuda-based Syncora Guarantee Inc. has agreed to a deal that will pay the bond insurer 20 cents on the dollar, according to a source familiar with negotiations. The city also agreed to extend the tunnel lease with a Syncora-controlled firm for 20 years. The city also will give Syncora millions in return for the firm’s pledge to help fight bond insurer Financial Guaranty Insurance Co., which is fighting Detroit’s debt-cutting plan.
Syncora had been pushing to liquidate the city's art collection to pay off debt. It had objected to the so called grand bargain that saved the city's art and reduced pension cuts significantly to city workers.
