An insurance company that backs more than $170 million in Detroit bonds says it opposes a plan by the city’s state-appointed emergency manager to restructure the city’s finances.
Ambac Assurance Corp. said in a statement issued on July 8 that it disagrees with Kevyn Orr’s plan to treat general obligation bondholders the same as unsecured creditors, calling it “harmful to Detroit and the interests of taxpayers in Michigan.”
Orr’s office disagrees with Ambac’s assessment, saying general obligation bonds are unsecured debt.
Orr stopped paying Detroit’s unsecured creditors in mid-June and seeks to settle their $11.4 billion in claims with about $2 billion. The bankruptcy expert plans to take about 25 bankers on a tour of some of Detroit’s hardest-hit areas to help them understand what is at stake.
Topics Carriers
Was this article valuable?
Here are more articles you may enjoy.
Georgia Appeals Court Reverses $345M Judgment Against Insurers in School Sex Abuse 
Dubai Flights Disrupted After Drones Injure Four Near Main Airport 
Florida House Gives Final Approval to Much-Debated Citizens Clearinghouse Bill 
US Offers $20 Billion Reinsurance Plan to Spur Gulf Oil Flow 
