DETROIT – Creditors who oppose the proposed settlement of Detroit's bankruptcy case have been having their say to the judge deciding whether to approve it.
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Thursday will be the third day of opening statements in the trial over the largest municipal bankruptcy in U.S. history.
Detroit wants to cut $12 billion in unsecured debt to about $5 billion through its plan of adjustment, which a judge must approve. Most creditors, including more than 30,000 retirees and city employees, have endorsed it.
Bond insurers Syncora Guarantee and Financial Guaranty Insurance Co. lead a small list of creditors opposing it. The insurers and the city have made their opening statements.
The proceedings could take many days, with dozens of witnesses — including the state-appointed emergency manager and possibly Detroit's mayor — called to testify.