Detroit's bankruptcy trial put on pause again

Reuters News
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Posted: Sep 17, 2014 9:02 AM

WASHINGTON (Reuters) - U.S. Bankruptcy Judge Steven Rhodes on Wednesday ordered a week-long break in Detroit's bankruptcy trial, giving the last major objector to the city's restructuring plan time to rework its case.

The hearing will be adjourned from Friday and reconvene Monday, Sept. 29. It also was put on hiatus last week for three days while the city put the finishing touches on a settlement with another hold out creditor Syncora Guarantee Inc.

Syncora formally withdrew its objections to the plan in light of the settlement on Tuesday, leaving Financial Guaranty Insurance Co, which has $1.1 billion on the line, to lead the fight against the plan and the questioning of witnesses. The insurer said it needed time to organize its case.

(Reporting By Lisa Lambert Editing by W Simon)