A federal judge ruled - Detroit can exchange
at least $1.67 billion
of its water and sewer debt
for new bonds
The three biggest credit raters made a choice,
to lower their grades on the bonds to junk.
The refinancing saves Detroit $11.4 million a year
for the first 19 years of the deal.
In effect , Detroit gets to borrow money,
through new securities with lower interest rates,
using the savings to bolster the finances of the bankrupt city.
The Michigan Finance Authority will issue new debt
with lower interest rates to purchase the tendered securities.
Lets call a spade , a spade here , okay !
Junk City bonds were swapped out for STATE bonds - laundering money
It's a Shell Game , manipulating the investment grades for a broken system at DWSD.
The broken system remains in place, as DWSD changed nothing, nothing at all.
“The city is hoping to avoid the characterization of its DWSD restructuring as a default
--by having bondholders agree to be defaulted upon,” according to the MMA report.
The plan is “attempting to walk a very technical line in rating agency definitions
of ‘default’ and ‘distressed exchange.’”
The taxpayers of Michigan, all 10 million of us, get the privledge of bailing out Detroit;
using the State of Michigan Treasury aka
Michigan Finance Authority.
Governor Snyder is an accountant, first and foremost, along with being a venture capitalist !
He was employed with Coopers & Lybrand, from 1982 to 1991,
beginning in the tax department of the Detroit office.