Detroit plans to sell about $975 million in bonds for retirement costs and some creditor settlements as part of its bankruptcy restructuring plan awaiting approval by a federal judge, Bloomberg News reported on Friday. The Detroit City Council approved four issues on Thursday, including $632 million of tax-limited general obligations that would pay 4 percent interest for the first 20 years and 6 percent for another 10 years, according to city documents. The $632 million in bonds would finance $450 million for retiree health care through a voluntary employee beneficiary association, agreed to by retirees. Another $34 million would pay claims by the city’s Downtown Development Authority.
http://www.bloomberg.com/news/print/2014-08-15/detroit-to-sell-millions…
In related news, a court-appointed bankruptcy expert filed a new invoice on Friday, charging the city nearly $313,000 in professional service fees for her firm’s efforts to evaluate Detroit’s debt-cutting plan, the Detroit News reported on Saturday. The bill, filed in U.S. Bankruptcy Court by Martha Kopacz, of Philadelphia-based Phoenix Management Services, outlines the services and expenses for her five-member team for the month of June. The latest tab is in addition to a $101,000 invoice Kopacz previously filed for nine days’ worth of work in late April after being appointed by Bankruptcy Judge Steven Rhodes. Judge Rhodes brought Kopacz in to assess the feasibility of Detroit’s proposed plan to restructure its debt and to review Detroit’s financial assumptions and projections.
http://www.detroitnews.com/article/20140815/METRO01/308150089/-1/rss23