Syncora reaches settlement with bankrupt Detroit

DETROIT – Creditor Syncora has reached a settlement deal in Detroit's bankruptcy case.

The New York-based company has been strongly opposing the city's bankruptcy plan in court. Syncora has said its claims are about $400 million and it would receive pennies on the dollar under the plan.

Under the new settlement, Syncora will receive 20 cents each dollar the bankruptcy city owes it. Syncora attorney Marc Kieselstein had mentioned 75 cents on the dollar this past week in court. Bankruptcy Judge Steven Rhodes denied that request.

READ: Syncora deal Memorandum of Understanding

Also under this settlement, Syncora will get all revenue from the Grand Circus Parking Garage in downtown Detroit. However, it comes with a stipulation: Syncora must renovate the garage.

Moreover, Syncora's management lease on the Detroit-Windsor Tunnel will be extended.

More details about the settlement will come during a news conference on Wednesday.

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