Detroit bankruptcy trial resumes after settlement

AP News
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Posted: Sep 15, 2014 10:10 AM

DETROIT (AP) — The city of Detroit says it has ironed out details of a settlement with a major opponent in its bankruptcy case.

The disclosure was made Monday as a judge resumed the trial after a three-day break. The timeout allowed Detroit and bond insurer Syncora to finish a deal announced last week.

Another bond insurer, Financial Guaranty Insurance, says it needs more time to craft strategy after the Syncora settlement, but Judge Steven Rhodes declined to stop the trial.

The judge is hearing evidence to decide whether Detroit's overall bankruptcy plan is fair to creditors and feasible in the years ahead. The trial started Sept. 2.

Thousands of retirees would see a 4.5 percent cut in their pension.