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Deal expected between Detroit, major creditor

Created: 10/15/2014 11:52 PM
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DETROIT (AP) — The judge overseeing Detroit's bankruptcy is expected to get news of a settlement between the city and a major creditor.

Lawyers have promised to reveal details in court Thursday as the trial on Detroit's bankruptcy plan nears an end.

A bond insurer, Financial Guaranty Insurance, is considered the most significant opponent of the plan still standing after months of deals between the city and other creditors.

Judge Steven Rhodes, who has presided over the trial since early September, must determine whether Detroit's plan for exiting bankruptcy is fair and feasible for the long run.

Financial Guaranty has lined up experts who question the plan, but any settlement would eliminate the need for their testimony.

The judge still needs to hear from his own expert, Marti Kopacz.

(Copyright 2014 by The Associated Press. All Rights Reserved.)

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