Detroit is close to agreements with more creditors on a plan to reduce its $18 billion debt load, lawyers for the city told a judge who withheld a final ruling on whether to allow a vote on the proposal.
Detroit’s “divide-and-conquer” campaign to build support for its plan to shrink $18 billion in debt with a recent series of creditor accords may put pressure on holdouts to settle before a bankruptcy judge decides to push it through, lawyers following the case said.
General Motors Co. asked a federal court in California to delay a lawsuit over faulty cars until a bankruptcy judge rules whether such claims can be brought without violating a sale order in its 2009 Chapter 11 case.
Detroit reached an agreement on pensions and health benefits with a group representing retired police officers and firefighters, as mediators seek deals with other retirees in the city’s record $18 billion bankruptcy.
Detroit’s bankruptcy judge will interview five candidates so he can choose one to help decide whether the city’s debt-adjustment plan is viable, including Richard Ravitch, who helped New York City resolve its fiscal crisis in the 1970s.
Momentive Performance Materials Inc., a maker of silicones and quartz products, filed for bankruptcy after struggling to make payments on debt dating to its 2006 buyout by Leon Black’s Apollo Global Management LLC.
Richard Li, the son of Hong Kong’s richest man Li Ka-shing, may have almost quadrupled his investment on a U.S.-backed loan to the bankrupt Fisker Automotive Holdings Inc., according to a settlement agreement.