Detroit yesterday missed a second payment on its outstanding general obligation bonds as the city continues to face opposition from major creditors to its plan to restructure $18 billion of debt and exit municipal bankruptcy, Reuters reported yesterday. Bill Nowling, a spokesman for Detroit Emergency Manager Kevyn Orr, said that the city does not intend to make the $47.6 million annual principal and semi-annual interest payment on the bonds that was due yesterday. The city has already defaulted on a $9.4 million interest payment on Oct. 1. That action led credit rating agencies to drop the rating on more than $600 million of unlimited and limited tax GO bonds to D, the bottom of the rating scale.
Don't miss the keynote by Detroit Emergency Manager Kevyn Orr at ABI's Annual Spring Meeting in Washington, D.C. later this month. For more information or to register, please visit http://www.abiworld.org/asm14.