More mediation ordered over potential Detroit bankruptcy deal

Reuters News
Posted: Sep 11, 2014 12:20 PM

DETROIT (Reuters) - Detroit, Syncora Guarantee Inc and other parties will remain in mediation indefinitely over a possible settlement in U.S. Bankruptcy Court, a federal judge ordered on Thursday.

U.S. District Judge Gerald Rosen, the chief mediator in Detroit's historic bankruptcy case, ordered that mediation, which began on Thursday, will also take place on Friday and will continue "day-to-day thereafter as deemed necessary, until released by the mediators."

The city and Syncora, the bond insurer that had been the fiercest hold-out creditor in the case, notified the U.S. Bankruptcy Court on Tuesday that they had reached a settlement in principle.

(Reporting By Lisa Lambert, additional reporting by Karen Pierog in Chicago; Editing by Chizu Nomiyama)