(Bloomberg) — Detroit overcame efforts by bond insurers that might have slowed its plan to exit bankruptcy before the end of the year, while the judge on the case said he was open to taking a bus tour to see what shape the city's in.
U.S. Bankruptcy Judge Steven Rhodes today in Detroit rejected a bid by Syncora Guarantee Inc. to question Michigan Attorney General Bill Schuette, who has endorsed a plan that would safeguard Detroit's art collection in exchange for hundreds of millions of dollars from philanthropic foundations and the state to shore up pensions.
Detroit filed a record $18 billion municipal bankruptcy in July, saying it couldn't meet financial obligations while maintaining essential services. The money from the foundations and the state is a key to resolving the case.
Rhodes declined to let bond insurers review documents from the mediation that led to the so-called grand bargain and also asked Syncora to withdraw its request to review the financial information of thousands of retired city workers.
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