Bond insurer to appeal judge's order in Detroit bankruptcy
Sept 10 (Reuters) - Syncora Guarantee, which insured some of Detroit's bonds and interest-rate swaps, filed a notice on Tuesday that it intends to appeal a bankruptcy court judge's order that gave the cash-strapped city continued access to casino revenue.
Judge Steven Rhodes, who is overseeing Detroit's largest-ever municipal bankruptcy filing, ruled on Aug. 28 that tax revenue from three Detroit casinos belonged to the city. The ruling froze Syncora's effort to block the city's access to an estimated $11 million in monthly revenue.
In its court filing, Syncora said it planned to appeal Rhodes' ruling to the U.S. District Court in Detroit. The notice by Syncora of intent to appeal marks the first time a litigant has stated an intent to appeal one of Rhodes' orders since Detroit's emergency manager Kevyn Orr filed the Detroit bankruptcy petition on July 18.
Syncora is one of several bond insurers and creditors that have filed objections in court to a deal by Detroit that could end the swaps at a discounted rate and give the city unfettered access to the casino revenue. The casino money had been pledged as collateral for the swaps that were used to hedge interest rate fluctuations on pension debt.
In depositions in the case, Orr and one of his top consultants said the casino revenue was essential to keep Detroit from running out of cash.