The federal judge overseeing Detroit's historic bankruptcy case on Thursday indicated he is willing to join a bus tour proposed by the city, while rejecting demands by a major creditor in the case for an explanation of how a legal opinion was reached, Reuters reported yesterday. Bankruptcy Judge Steven Rhodes, who is no stranger to Detroit having served there as a bankruptcy judge since 1985, said in court he was open to the idea of a tour as long as its timing and locations are not publicly disclosed. Detroit had argued that a site visit would provide important evidence for Judge Rhodes as he determines whether Detroit's plan to adjust $18 billion of debt and exit the biggest municipal bankruptcy in U.S. history is fair and feasible. But some city creditors, including bond insurance companies and European banks that own Detroit debt, objected to the tour, calling it improper and unnecessary. Meanwhile, Syncora Guarantee Inc, one of the few remaining hold-out major creditors in the case, dropped its demand for personal financial information for some 20,000 retired city workers. Detroit had vehemently protested the move, but agreed yesterday not to use the financial hardships of retirees as an argument for their treatment in the debt adjustment plan.
