DETROIT – 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.