Creditor says Detroit bankruptcy plan flawed
DETROIT (AP) — An attorney for bond insurer Syncora Guarantee says Detroit's debt-restructuring plan is "flawed" and cannot be approved at the end of the city's bankruptcy trial.
The New York-based company is one of about 12 creditors opposing the plan in court. Syncora has said its claims are about $400 million and it would receive pennies on the dollar under the plan.
Atty. Marc Kieselstein said during Syncora's opening statements today the plan is not fair and equitable to financial creditors.
Kieselstein also criticized efforts to keep some pieces at the Detroit Institute of Arts from being sold to satisfy some of the debt.
Detroit wants to cut $12 billion in unsecured debt to about $5 billion through its plan of adjustment, which must be approved by federal Judge Steven Rhodes.