Bond Insurer Slams Detroit Suit, Seeks To Intervene

Law360, New York (March 18, 2014, 1:46 PM EDT) -- A bond insurer in Michigan bankruptcy court Monday slammed the city of Detroit’s efforts to nullify an agreement to pay $1.44 billion in pension-related debt, seeking to intervene in the city’s adversary suit and potentially throwing a wrench in its Chapter 9 bankruptcy exit plan. 

In a motion filed in the state's Eastern District, the Financial Guaranty Insurance Co. said the city should not be allowed to avoid the so-called certificates of participation it sold to the public in 2005 and 2006. The FGIC, which insured...
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