Detroit Bankruptcy Trial Delayed
delaying the inevitable
A federal judge agreed on Wednesday to delay Detroit's bankruptcy trial to give the city and its fiercest opponent a chance to finish a major settlement that could speed an end to the city's court fight over its future.
A tentative deal with Syncora Guarantee, a bond insurer that said its exposure in Detroit amounted to hundreds of millions of dollars, was announced Tuesday, and Judge Steven W. Rhodes agreed to halt the trial, which began last week, until Monday so details of the deal could be worked out. A final settlement with Syncora could permit Detroit, the largest American city ever to file for bankruptcy, to emerge from court far more quickly and smoothly than expected.