A judge on Wednesday suspended Detroit’s bankruptcy trial until next week to give lawyers time to work out the details of a settlement that would satisfy a major creditor that opposed the city’s plan to get on its feet again.
The city reached a deal Tuesday with Syncora, a bond insurer that stood to lose about $400 million under Detroit’s plan to get out of bankruptcy. Detroit would extend Syncora’s lease on a tunnel between the U.S. and Canada and grant it a long-term lease on a downtown parking garage, among other concessions.
Syncora would recover roughly 26 percent of its claim, said Steven Schlein, a spokesman for a law firm representing the company.
The Emergency Election Sale is now live! Get 30% to 60% off our most popular products today!