A federal judge yesterday again delayed the start of the key phase of Detroit's historic bankruptcy case, pushing it to Aug. 29 from Aug. 21, Reuters reported yesterday. U.S. Bankruptcy Judge Steven Rhodes on Tuesday had raised the possibility that the confirmation trial, on Detroit's plan to adjust $18 billion of debt and exit the biggest-ever municipal bankruptcy, may be delayed to allow time for the city to incorporate a major settlement over $5.2 billion of water and sewer revenue bonds into the plan. The judge's new schedule calls for individual creditors who are representing themselves and who are objecting to the plan to present their evidence on Aug. 29. Starting Sept. 2, the hearing will move onto opening statements from Detroit and from attorneys representing major creditors opposing the plan, including Syncora Guarantee, a bond insurance company that has launched a fierce battle on many fronts of the bankruptcy.
