Detroit bankruptcy trial may be suspended again
DETROIT (AP) — The city of Detroit says it has ironed out details of a settlement with a major opponent in its bankruptcy case.
The disclosure was made as a judge resumed the trial Monday after a three-day break. The timeout allowed Detroit and bond insurer Syncora to finish a deal announced last week.
The trial may not get too far Monday. Another bond insurer, Financial Guaranty Insurance, wants to suspend the trial for five more days to understand the details and possibly change its trial strategy.
Judge Steven Rhodes is hearing evidence to decide whether Detroit's overall bankruptcy plan is fair to creditors and feasible in the years ahead. The trial started Sept. 2.
Thousands of retirees would see a 4.5 percent cut in their pension.