Detroit To Halt Debt Payments As Part Of Restructuring

Law360, New York (June 14, 2013, 5:26 PM EDT) -- Detroit will stop making payments on some of its staggering $17 billion debt and is asking creditors to swallow huge losses in an effort to restructure the city’s financial system, according to a report from Detroit’s emergency financial manager Kevyn Orr.

The former Jones Day partner said the city is insolvent and cannot afford to make payments on its unsecured debt, including $40 million due Friday on pension-related certificates of participation, making a moratorium on those payments necessary. Bondholders and retirees will likely be forced to...
To view the full article, register now.

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.