Syncora, Detroit Deal Brings End of Chapter 9 Closer

The Bond Buyer reports:

Detroit and Syncora Guarantee Inc. said Monday they've reached a final settlement that is expected to accelerate the city's exit from the largest municipal bankruptcy in the U.S.

"This is a big day for Syncora and a big day for the city of Detroit," Syncora attorney Ryan Bennett, from Kirkland & Ellis LLP, told U.S. Bankruptcy Judge Steven Rhodes in court Monday.

The deal leaves bond insurer Financial Guaranty Insurance Co. as the only major holdout creditor in the case. FGIC and Syncora, which together guaranteed payments on $1.5 billion of pension certificates of participation, had aligned much of their legal strategy objecting to the plan.

History in the making.