(Bloomberg) — Syncora Guarantee Inc. threatened to put another obstacle in the way of Detroit's efforts to cut debt through bankruptcy by saying it may oppose the city's plan to pay $85 million to end interest-rate swaps.
Syncora, which insures some Detroit bonds, derailed a previous attempt by the city to get out of the swaps contracts with UBS AG and Bank of America Corp.'s Merrill Lynch unit. A lawyer for the New York-based company told U.S. Bankruptcy Judge Steven Rhodes in Detroit yesterday that his client has reservations about the latest plan as well.
“There is a likelihood that we will object,” said the attorney, Stephen C. Hackney. “We have real concerns.”
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
