Kevyn Orr testifies that bond insurer challenges to Detroit bankruptcy would have been costly

Markets Associated Press

Emergency manager Kevyn Orr says it would have cost the city big to fight bond insurer Syncora Inc.'s challenges to Detroit's bankruptcy.

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Orr testified Thursday in Detroit's bankruptcy trial that legal fees were anticipated at $5 million to $10 million.

He told federal Judge Steven Rhodes that Syncora opposed the city's use of some casino tax revenue, Detroit's bankruptcy eligibility and a loan to improve quality of life in the city.

The challenges were settled with a Sept. 9 deal with the city. Syncora is getting cash and long-term leases on a parking garage and the tunnel between Detroit and Canada, among other concessions.

Rhodes is to decide whether Orr's plan to remove $7 billion in debt is fair to creditors. Syncora now supports the city's debt plan.