News

Major Creditor Challenging Detroit Bankruptcy Plan Says It Just Wants Fair Treatment

August 18, 2014

Detroit’s plan to exit bankruptcy goes on trial at the end of the month. One of the leading opponents of the plan is the bond insurer company Syncora, which put more than a billion dollars into Detroit’s pension fund in 2005. The city argues that deal was illegal because it was allegedly designed to hide the fact that Detroit had borrowed more than it was legally allowed to. But Syncora’s chief counsel – James Sprayregen – tells WDET’s Quinn Klinefelter the company believes the deal was legitimate and the debt should be treated just the same as Detroit’s pension obligations.