DETROIT, Oct. 16, 2014 /PRNewswire/ -- Kevyn D. Orr, Emergency Manager for the City of Detroit ("City"), issued the following statement regarding today's announced settlement with Financial Guaranty Insurance Company (FGIC), one of the City's largest impaired creditors:
"Today's settlement with Financial Guaranty Insurance Company clears a major hurdle the City faced in its attempt to restructure more than $7 billion in debt and free up nearly $1.4 billion to be reinvested back into City services. The City all along has sought negotiated settlements with its impaired creditors that were not only fair and reasonable given Detroit's financial situation, but also would allow it to exit bankruptcy solvent and able to deliver basic services to its nearly 700,000 residents. I want to thank FGIC for its hard work and willingness to reach this settlement and to become a partner in Detroit's recovery. I also want to commend the work of U.S. Chief Judge Gerald Rosen and his team of federal mediators who helped facilitate this agreement and all other creditor agreements. Credit also goes to the City and State of Michigan officials who worked tirelessly to achieve the best outcome for Detroiters."
Details of the settlement between the City and FGIC can be found at: http://www.detroitmi.gov/EmergencyManager/BankruptcyChapter9.aspx.
SOURCE City of Detroit