Detroit bankruptcy trial set to resume after break
DETROIT (AP) — A judge is set to resume Detroit's bankruptcy trial after a three-day break tied to a settlement with a major creditor.
Judge Steven Rhodes is hearing evidence to help him decide whether Detroit's plan is fair to creditors and feasible for the city in the years ahead. He suspended the trial last week until Monday.
The timeout allowed Detroit to iron out settlement details with bond insurer Syncora and other parties and also to try to reach a deal with Financial Guaranty Insurance, another bond insurer.
Financial Guaranty Insurance on Sunday asked Rhodes to delay the trial at least another week.
The judge has been hearing testimony about years of neglect in the police and fire departments and a plan to pump millions of dollars into each.