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Breakingviews: Motown's bankruptcy roadblocks

Friday, August 15, 2014 - 03:10

The trial to review Detroit's turnaround has been delayed and two creditors say they're getting a raw deal. Reynolds Holding and Antony Currie explain what this means for the city's recovery.

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Detroit looks to be in the final stretch of its road out of bankruptcy but they're still could be some bumps along the way. To bond insurers are holding out hopes for a better deal. And Anthony what's going on on an -- really a threat to Motown chances for revival. The general impression seems to be we've we've that I am constantly Chicago can now -- that is right the generals ID seems to be that these -- and it -- Probably don't have much of the case and what SA and a lot of notice based what's happening there was date back one point five billion of debt issued in the mid two thousands to the city. Right Sharon pension exactly and these cities now claiming that this is illegally when I've. Debt limits should have been done yet yet so it. The judge appointed to mediate you came in and said it will give ten cents in the -- and these two points it was nice that we should get global credit retreating pensioners who are simply -- -- to us and then in the not a registered -- him completely differently. The -- is it getting. Well that they've they're taking act up but no not as anywhere near as much -- equity ninety ovals are about insurance -- -- the mediator is actually. Bias against the predators cancers treating the answer is a lot better that's. That sounds like a stretch it -- maybe that's still think in the sale appeal is very unlikely. Judge Stephen Wright servicing the bankruptcies in the -- that the media H that he appointees has lost the plot and I just from a -- And sykora I think brings up the other point which kind of makes some sense that's what we. We backed these bonds Detroit you've benefited from the money. And I saying although with and it was all legal announcing party went a second if you if the judge says that he agrees with you. We're wrote something yeah because and Bennett bastion that that's that's going to be the the the the biggest issue for the for the bankers and other judges put for the next meeting into the and -- this -- maintenance -- so we gonna wait a bit longer but -- also those courses. The longer it plays out there that Malarkey is pregnancy Kevin pulls the that the guy -- privacy before October exact route could actually go there yet. So I'd -- bureaucratic issue but it's still nonetheless just complicates things as what other wrinkle we go we got so I -- it's five billion all of ball suitable to -- -- mentally. Exchange for new -- right and this it this extra deadline means the city at least has been more time to see if they can get healthy exchange system a base to one point five billion to these -- used a bond insurers are going up to this issue. -- that's a -- that they they do actually managed to get some kind of released the judge and -- -- the money they get a list when he Detroit has to invest in the future mine which it is and turnarounds now there's also this question is will question it's just you know how much more quickly can turn around which is the whole point exact. -- -- -- back and fate and if it pushes the and if it pushes the settlement backing further Eden way below the trolleys acres of -- 23 is that licking a long time -- -- -- -- that just has been pretty good pushing this along we'll see if he continues to do so. In the meantime stay tuned for more breaking news next week.

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Breakingviews: Motown's bankruptcy roadblocks

Friday, August 15, 2014 - 03:10