Deal set with Syncora, Detroit to put fiercest rival to work
Two of the loudest voices objecting to Detroit's bankruptcy adjustment plan have been bond insurers Syncora and Financial Guaranty Insurance Corporation, known as FGIC. Both companies were left holding the bag in a $1.4 billion pension deal, the "swaps."
Things just got much colder and bleaker for FGIC. That's because Syncora and the city have struck an 11th-hour deal.
Syncora now is willing to receive 26 cents on the dollar of what it is owed, up from 10 cents under the city's previous plan, plus a package that includes an extended lease on operation of the Detroit-Windsor Tunnel and a parking deal.
Chad Livengood of The Detroit News was keeping track of this interesting turn of event.
"They've been back and forth name-calling ... Now this creditor has come full circle and is saying we want to be part of Detroit's comeback. And essentially the city is going to put its fiercest rival to work," says Livengood.
*Listen to the interview with Chad Livengood above.