Detroit, key bankruptcy plan opponent reach deal
DETROIT (AP) — Detroit has reached a tentative deal with one of its key creditors that could remove the biggest stumbling block in the city's plan to reduce its debts and emerge from federal bankruptcy protection.
A court filing Tuesday evening says that Detroit and the bond insurer Syncora Guarantee "have reached an agreement in principle" to settle the company's $400 million claim in the nation's largest-ever municipal bankruptcy case.
The two sides ask Judge Steven Rhodes for a postponement of the bankruptcy case trial until Friday.
Syncora Guarantee and fellow bond insurer Financial Guaranty Insurance Co. have been leading a small group of creditors fighting the plan by state-appointed emergency manager Kevyn Orr.
Most creditors have endorsed Detroit's plan to cut $12 billion in unsecured debt to about $5 billion.