Detroit Can Hang On To Casino Tax Revenues, Judge Rules

Law360, New York (July 11, 2014, 1:47 PM EDT) -- Syncora Holdings Ltd. failed on Friday to trap casino tax streams flowing to the city of Detroit to satisfy the bankrupt municipality’s debt obligations when a Michigan federal judge held that the revenues are part of the debtor’s estate and off-limits to creditors.

In a brief order, Senior U.S. District Judge Bernard A. Friedman affirmed a decision by Detroit’s bankruptcy court that held casino tax revenue pledged to the city was subject to the automatic stay imposed after it filed for bankruptcy in July 2013....
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