Politics

City Could Give Away Airport, Other Sites To Satisfy Disgruntled Creditor

August 30, 2014, 12:29 PM

The city of Detroit may give away the Coleman A. Young Municipal Airport, a stake in the Detroit-Windsor Tunnel and other real estate to a satisfy a creditor, which stands to lose hundreds of millions of dollars if the city's bankruptcy is finalized.

The Detroit News reports that city attorneys are in private talks this weekend to settle the holdout credit, Syncora.

Syncora is a bond insurer that backed $400 million in city debt. It is being asked to write off at least 90 percent of that obligation and its fighting to get a lot more back.

It has fought the bankruptcy and has been trying to get at the city's art to satisfy money owed it by the city.

Under four bylines -- Robert Snell, David Shepardson, Chad Livengood and Christine Ferretti -- The News says:

The possibility of a last-minute settlement emerged Friday, 13 months into the city’s bankruptcy case and following increasingly toxic battles between the city’s legal team and Syncora, which could lose about $270 million in the bankruptcy settlement. Syncora has pushed Detroit to liquidate its art collection. But it recently focused on other assets with the bankruptcy trial looming Tuesday and after U.S. Bankruptcy Judge Steven Rhodes criticized the firm’s legal team this week for leveling a personal attack at the judge’s mediators.

“We sense a renewed approach by Syncora to engage in mediation but I can’t talk about details,” Bill Nowling, spokesman for Emergency Manager Kevyn Orr, told The News on Friday.


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