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2-3 Weeks Till Judge Rules On Detroit Bond Debt

February 22, 2014
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CBS Detroit

DETROIT (WWJ/AP) – A judge said he will decide in two to three weeks whether bond insurers’ claims that the millions of dollars they are owed by Detroit should be considered secured debt during the city’s bankruptcy.

National Public Finance Guarantee Corp., Ambac Assurance Corp. and Assured Guaranty Municipal Corp. made their arguments Wednesday before bankruptcy Judge Steven Rhodes.

The companies want Detroit to use special property taxes to resume making payments on the bonds. However, attorneys for Detroit said Wednesday that debt is unsecured and not funded by a revenue stream.

Rhodes told the bond insurers and the city that they should work toward a negotiated resolution, according to The Detroit News.

“The decision here is most likely all or nothing,” Rhodes said. “One side is going to win and the other side is going to lose.”

How the city’s debt is restructured will be part of state-appointed emergency…

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