Syncora Guarantee Inc., the bond insurer caught up in the battle over Detroit's casino tax revenue, is appealing a bankruptcy judge's decision that has allowed millions of dollars of those taxes to continue flowing into the city during its historic $18 billion bankruptcy, Dow Jones Newswires reported yesterday. The one-page appeal, filed in bankruptcy court on Tuesday, doesn't explain why Syncora Guarantee officials are protesting the Aug. 28 ruling from Judge Steven Rhodes, who had concluded that the bond insurer doesn't have the power to block the stream of casino tax money because of U.S. Bankruptcy Code rules that have protected the 700,000-resident city's "property" since it filed for chapter 9 protection in July. Prior to that decision, Syncora Guarantee attorneys argued that they had the power to "trap" that money while protesting a larger settlement.
