Detroit agreed to pay some bondholders about 74 percent of the $388 million they are owed in a deal that shifts $100 million to city pension funds and lightens the burden on insurers that backed the debt.
Syncora Guarantee Inc., the bond insurer fighting Detroit’s debt-cutting plans, said it may cancel insurance it wrote for interest-rate swaps that the city is seeking to terminate with an $85 million settlement.
San Bernardino, the bankrupt Southern California city, has a tentative agreement with its biggest creditor, the California Public Employees’ Retirement System, that should help it in talks with others, the city’s lead bankruptcy attorney said.
Ambac Financial Group Inc., the bankrupt holding company for a failed bond insurer, filed a new plan to restructure more than $1.25 billion in senior notes after a proposed settlement with the Internal Revenue Service.
Wisconsin Insurance Commissioner Sean Dilweg is seeking a state judge’s approval of a plan to “rehabilitate” a $50 billion Ambac Assurance Corp. portfolio of policies to insure bonds and mortgage-backed securities.