The city’s water department approved a plan to refinance almost $5.2 billion in debt, a move that could free up cash for Detroit’s restructuring and potentially speed an exit from bankruptcy court, the Detroit News reported today. The plan, approved by Detroit Water and Sewerage commissioners, would lower the utility’s interest rate, slash costs and potentially save customers across the region millions of dollars. The amount of savings for the city depends on how many bondholders accept the offer but the maximum savings would be significantly less than $500 million. The plan involves offering bondholders a chance to have the city buy back the bonds. By doing so, the utility would refinance up to $5.183 billion of debt.
http://www.detroitnews.com/article/20140806/METRO01/308060114/Detroit-a…
In related news, the tab for the first nine months of Detroit's historic bankruptcy case is at least $51.19 million, according to a report on fees and expenses charged by the city's team of lawyers and consultants from July 2013 through March 2014, Reuters reported yesterday. There were no March fees and expenses listed for Jones Day, indicating that the law firm's eventual charges will exceed the report's $17.35 million. Meanwhile, the report only included fees and expenses from accountants Ernst & Young for January through March of this year, $3.69 million. The firm has revised and redacted monthly invoices for July through December 2013, and the fee examiner will file supplements on those numbers in coming days, according to the report. Additionally, the fee examiner keeping tabs on the bills of professionals working on Detroit's municipal bankruptcy questioned more than $67,000 worth of charges submitted by Dentons for media activities, such as reviewing newspaper coverage and compiling press reports, during the first three months of this year, the American Lawyer reported today.
http://www.reuters.com/article/2014/08/06/usa-detroit-fees-idUSL2N0QC14…