Detroit’s Casino-Tax Dollars Become Big Issue in Bankruptcy Case

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    Detroit had a bit of rare good fortune as it hurtled toward bankruptcy last summer — a couple of banks were willing to let it out of some expensive financial contracts, called interest-rate swaps, without paying in full the usual steep termination fees.

    But since then, an insurance company has been seeking to block the deal, lining up allies among Detroit’s other creditors. The insurer, Syncora Guarantee, contends that Detroit’s good deal was struck at its expense, improperly stripping it of cash that Detroit now wants to use to tide itself over as it goes through the biggest Chapter 9 municipal bankruptcy case in American history. Continue to New York Times …

    Read more http://www.michronicleonline.com/index.php/news-briefs-original/14580-detroit-s-casino-tax-dollars-become-big-issue-in-bankruptcy-case

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