Vocal creditor Syncora says Detroit bankruptcy plan flawed
Updated On: Sep 03 2014 03:37:11 PM EDT
An attorney for bond insurer Syncora Guarantee says Detroit's debt restructuring plan is "flawed" and cannot be approved at the end of the city's bankruptcy trial.
The New York-based company is one of about 12 creditors opposing the plan in court. Syncora has said its claims are about $400 million and it would receive pennies on the dollar under the plan.
Attorney Marc Kieselstein said during Syncora's opening statements Wednesday the plan is not fair and equitable to financial creditors.
Kieselstein also criticized efforts to keep some pieces at the Detroit Institute of Arts from being sold to satisfy some of the debt.
Detroit wants to cut $12 billion in unsecured debt to about $5 billion through its plan of adjustment, which must be approved by federal Judge Steven Rhodes.
City attorney: Plan is best Detroit can offer creditors
An attorney representing Detroit has told a judge that the city couldn't do any better than the amounts of money provided for creditors in its debt-restructuring plan.
Bruce Bennett said Wednesday that "resolving the city's current condition" had to be taken care of first, including funding to improve essential services.
Bennett told federal Judge Steven Rhodes on the second day of Detroit's bankruptcy trial that the city didn't discriminate against creditors.
Special section: Detroit bankruptcy