An attorney for Detroit said that the city is eying a date between Dec. 8 and 10 for its debt adjustment plan to take effect, allowing the city to exit the biggest-ever municipal bankruptcy, Reuters reported yesterday. Heather Lennox, Detroit's attorney with law firm Jones Day, told U.S. Bankruptcy Court Judge Steven Rhodes that the city expects to complete a budget that incorporates the plan during the first week of December, clearing the way for the completion of financing to fund key creditor settlements. Lennox said the remaining issues with the settlements should be resolved this week, including state of Michigan approval for development agreements with bond insurers Syncora Guarantee Inc. and Financial Guaranty Insurance Co. Both companies, which guaranteed payments on Detroit bonds, were given options to develop city property as part of their settlements. The insurers will share in $88.43 million of taxable limited-tax general obligation bonds that Detroit plans to pay off over 12 years with parking revenue. Judge Rhodes, who confirmed the city's plan on Nov. 7, did not set an effective date at Monday's hearing.
