Detroit Art Deal Brokered by Biased Mediators: Syncora
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An $800 million settlement underpinning Detroit’s plan to exit from its record municipal bankruptcy was brokered by biased mediators and should be thrown out, bond insurer Syncora Guarantee Inc. told a federal judge.
Syncora, which may be forced to make up bondholder losses should the plan be approved, filed its objection to the proposal today, as U.S. Bankruptcy Judge Steven Rhodes is to begin a monthlong trial on approving the city’s bid to adjust $18 billion in debt.