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Policy: Entitlements

Judge delays Detroit bankruptcy trial start 8 days

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News,Business,Detroit,Entitlements,Michigan,Budgets and Deficits

DETROIT (AP) — A federal judge has ordered another postponement in the start of a trial on Detroit's bankruptcy plan.

Judge Steven Rhodes says in his order Wednesday that Detroit officials intend to submit a revised debt restructuring plan. He says for that reason, he's postponing the schedule of hearings and deadlines in the case.

The trial in the largest municipal bankruptcy case in U.S. history now is scheduled to begin Aug. 29, rather than Aug. 21. It follows an earlier one-week postponement.

Detroit filed for bankruptcy protection in 2013, saying it couldn't repay $18 billion in debt.

It's reached agreements with many creditors, including retirees. Still unresolved is a challenge from New York-based Syncora Guarantee, which has a $400 million claim tied to an interest-rate swap deal on pension bond debt.

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