Underwriters for up to $5.5 billion of Detroit water and sewer revenue bonds released preliminary sale documents for the deals on Tuesday as a tender offer for existing bonds continues, Reuters reported yesterday. If enough bonds are tendered by 5 p.m. EDT today and sufficient savings are projected, the refunding bonds could be sold in two issues through the Michigan Finance Authority with Citigroup as the lead underwriter. As an alternative, the bonds could be privately placed with Citigroup and other financial institutions. Bill Nowling, a spokesman for Detroit Emergency Manager Kevyn Orr, said on Tuesday a determination on how the bonds will be sold would be made next week. With a public sale, the bonds could be sold next week with the deals closing around Sept. 4, he added.
http://www.reuters.com/article/2014/08/20/usa-detroit-bankruptcy-bonds-…
In related news, Bankruptcy Judge Steven Rhodes canceled today an Aug. 29 hearing that was set to kick off the city’s bankruptcy trial, meaning the historic proceeding will now begin Sept. 2, the Detroit Free Press reported today. Judge Rhodes had scheduled the trial to begin Aug. 29 with a special proceeding in which individual retirees who objected to the city’s plan of adjustment would be given a chance to present their own evidence and witnesses. But the judge has decided to allow people who asked to participate in the trial to make their arguments later in the proceeding so they have an opportunity to respond to the city’s arguments. Altogether, about three dozen people filed timely requests to participate. The trial is currently set for Sept. 2-5, 8-12, 15-19, 22-24, 29-30; Oct. 1-3, 6-7 and 14-17.
http://www.freep.com/article/20140820/NEWS01/308200178/1001/rss01