Leaders of the bankrupt city of Detroit say that several bond investors and an insurer don't have the right to step into a fight that could make $1.4 billion of borrowed money — including their investments — disappear from the city's debt, Dow Jones Daily Bankruptcy Review reported today. In court papers, the city's bankruptcy lawyers argued that both Financial Guaranty Insurance Co. and investors who extended a type of bond debt to the city gave up the right to sue over the 2005 borrowing deal when they signed their contracts.
