City of Detroit filed with the U.S. Bankruptcy Court objection to Syncora Guarantee Inc. and Syncora Capital Assurance Inc.’s (collectively, “Syncora”) ex parte motion to extend disclosure statement approval schedule. The Debtors explain, “The Motion to Extend represents the latest attempt by Syncora–the insurer (and partial holder) of approximately $620 million (or roughly 3.5%) of the City’s approximately $18 billion of prepetition liabilities–to delay and disrupt the City’s restructuring. Having objected to virtually every action taken by the City in this chapter 9 case to this point, Syncora now seeks to obstruct the City’s plan confirmation process. Although it dresses up its request for relief as a plea for the preservation of due process, Syncora merely seeks more disruption and delay. While this may be consistent with the scorched earth litigation strategy Syncora has adopted since the Petition Date, it is inconsistent with the stated purpose of the Court’s Second Amended Order Establishing Procedures, Deadlines and Hearing Dates Relating to the Debtor’s Plan of Adjustment (Docket No. 2937) (the “Scheduling Order”) (i.e., to “promote the just, speedy, and inexpensive determination of this case” (Scheduling Order, at 1). Syncora will not be prejudiced by moving forward to the scheduled Disclosure Statement hearing. Its Motion to Extend should be denied.”
About Brandy Chetsas
Brandy L. Chetsas is editor in chief at Bankrupt Company News. She joined New Generation Research, Inc. in 1998. As Director of Strategic Content, she leverages 20+ years of communications and project management experience for the distressed investing sector--with particular expertise on corporate restructurings via Chapter 11. Brandy began her career writing for a law enforcement-related publication and teaching English courses at numerous colleges in the U.S. and abroad.