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WSJ: Detroit nearing deal with bond insurers

  • An agreement between Detroit and bond insurers Assured Guaranty (AGO), Ambac (AMBC), and National Public Finance Guaranty (MBI) would be a critical step as the city winds its way through Chapter 9 bankruptcy. Detroit emergency manager Kevin Orr has deemed about $410M of previously sacrosanct general-obligation debt as unsecured, a decision bond insurers - who would be on the hook for millions if the paper sees just the 15% recovery Orr has proposed - are howling about.
  • "Time is growing shorter," said Michigan Governor Rick Snyder in an interview today. "A lot of work is going on in the mediation process, with great urgency ... [the] best case" is for parties to reach a settlement. A deal, says the Journal, could be struck as early as tomorrow.
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  • Also watching with interest: Syncora Holdings (SYCRF).
Comments (4)
  • Michael Bryant
    , contributor
    Comments (5535) | Send Message
     
    Has anybody bought Detroit bonds? How high are the coupons?
    8 Apr, 10:17 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (8526) | Send Message
     
    Looks like another great chance to back up the truck again in (MBI) and (AMBC) is coming within 24 hours.

     

    The core businesses are doing fine and an AA+ rating may be only a year away at most.
    8 Apr, 10:58 PM Reply Like
  • Mattster
    , contributor
    Comments (162) | Send Message
     
    maybe then Detroit can apply for inclusion in the Frontier market index if they are lucky
    8 Apr, 11:46 PM Reply Like
  • me-awwCmon!
    , contributor
    Comments (4) | Send Message
     
    Sounds like another pump and dump.
    8 May, 11:22 PM Reply Like
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