{"id":5664,"date":"2014-08-30T00:00:00","date_gmt":"2014-08-30T05:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2014\/08\/bond_insurer_says_detroit_pens"},"modified":"2022-05-06T11:46:56","modified_gmt":"2022-05-06T16:46:56","slug":"bond-insurer-says-detroit-pens","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/bond-insurer-says-detroit-pens\/","title":{"rendered":"Bond Insurer Says Detroit Pension Debt Lawsuit is Fraudulent"},"content":{"rendered":"

Financial Guaranty Insurance Company is challenging the city of Detroit, Michigan\u2019s efforts to invalidated $1.45 billion in borrowings that were supposed to resolve unfunded pension liabilities. Instead, they have been named as one of the reasons that the city went into Chapter 9 bankruptcy. The bond insurer is asking a bankruptcy judge to turn down the adversary complaint brought by Detroit to nullify debt that is pension-related.<\/p>\n

The city maintains that the debt was issued by its former administration’s mayor and violated state law. It contends that the debts, which were viewed as contract payments, were really concealed borrowings that improperly went beyond the municipal debt limits of the Home Rule City Act.<\/p>\n

FGIC says that this stance is a switch for the city, which for years insisted that the obligations were valid. The bond insurer wants damages from Detroit and says the city deceived it so that FGIC agreed to guarantee the transactions.<\/p>\n

Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

Financial Guaranty Insurance Company is challenging the city of Detroit, Michigan\u2019s efforts to invalidated $1.45 billion in borrowings that were supposed to resolve unfunded pension liabilities. Instead, they have been named as one of the reasons that the city went into Chapter 9 bankruptcy. The bond insurer is asking a bankruptcy judge to turn down […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3957],"tags":[],"class_list":["post-5664","post","type-post","status-publish","format-standard","hentry","category-pension-funds"],"yoast_head":"\nBond Insurer Says Detroit Pension Debt Lawsuit is Fraudulent — Investor Lawyers Blog — August 30, 2014<\/title>\n<meta name=\"description\" content=\"Financial Guaranty Insurance Company is challenging the city of Detroit, Michigan\u2019s efforts to invalidated $1.45 billion in borrowings that were supposed — August 30, 2014\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/bond-insurer-says-detroit-pens\/\" 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