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Detroit can keep casino tax revenue, judge rules
Source: Reuters
Detroit can keep casino tax revenue, judge rules
By Bernie Woodall and Joseph Lichterman
DETROIT | Wed Aug 28, 2013 2:52pm EDT
(Reuters) - Cash-strapped Detroit can continue to access an estimated $11 million a month in casino tax revenue, a U.S. bankruptcy judge ruled on Wednesday, while the court takes up a deal with creditors related to the revenue.
U.S. Bankruptcy Judge Steven Rhodes, who is overseeing Detroit's bankruptcy petition, ruled that bond insurer Syncora Guarantee Inc cannot block the city from using taxes paid by the city's three casinos.
Rhodes said Syncora does not have a lien on the money used as collateral since 2009 to secure Detroit's obligations on interest-rate swap agreements. Detroit entered into those agreements in conjunction with the sale of pension debt for its two retirement funds.
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By Bernie Woodall and Joseph Lichterman
DETROIT | Wed Aug 28, 2013 2:52pm EDT
(Reuters) - Cash-strapped Detroit can continue to access an estimated $11 million a month in casino tax revenue, a U.S. bankruptcy judge ruled on Wednesday, while the court takes up a deal with creditors related to the revenue.
U.S. Bankruptcy Judge Steven Rhodes, who is overseeing Detroit's bankruptcy petition, ruled that bond insurer Syncora Guarantee Inc cannot block the city from using taxes paid by the city's three casinos.
Rhodes said Syncora does not have a lien on the money used as collateral since 2009 to secure Detroit's obligations on interest-rate swap agreements. Detroit entered into those agreements in conjunction with the sale of pension debt for its two retirement funds.
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Read more: http://www.reuters.com/article/2013/08/28/us-usa-detroit-bankruptcy-idUSBRE97Q0K820130828