Detroit Case Scrutinized by $900 Billion G.O. Market
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July 19 (Bloomberg) -- The fate of a 2 percent sliver ofDetroit’s obligations is drawing scrutiny from investors holdinga $900 billion chunk of the U.S. municipal-debt market.
Before filing the largest U.S. municipal bankruptcyyesterday, Detroit Emergency Financial Manager Kevyn Orr triedto persuade holders of $369 million of unlimited generalobligations, which are supposed to have the full backing oftaxpayers, to accept less than 20 cents on the dollar. Theborrowings are part of $17 billion in debt and long-termliabilities Orr sought to restructure.