1.5 BILLION dollars in Bonds - Ramifications ?

Willi · November-09-14, 11:25 AM

Kevin Orr clearly said this morning on Flashpoint that Detroit borrowed its way out of bankruptcy to the tune of $$$$$ 1.5 Billion dollars

http://www.clickondetroit.com/news/p...point/29628246

- Insurance Companies dealing with Municipal Bonds got clobbered

- Creditors who own bonds WILL return, to cash out their investments

Syncora Holdings Ltd. [[OTC: SYCRF) is a Bermuda-domiciled holding company.

Pike Pointe Holdings LLC [["Pike Pointe"), a subsidiary of Syncora Guarantee Inc., is advancing development agreements with the City of Detroit and the City of Windsor with respect to the Detroit Windsor Tunnel and related or adjacent properties. Pike Pointe is a holding company for investment in and operation of infrastructure assets [[including toll assets and parking, among others) through its American Roads andDetroit Windsor Tunnel LLC subsidiaries [[both based in Detroit), which include a lease to operate the U.S. portion of the Detroit Windsor Tunnel.

**Wesley Mouch** · November-09-14, 12:14 PM

The obvious ramification is that the City won't be able to go back to its old ways -- because if it does -- Bankruptcy 2.0 will be massively ugly. I hope our State has made sure that there are checks in place against the possibility ongoing voter stupidity wherein voters elect populists who tell them what they want to hear, and not what they need to do to rebuilt our future.

Willi · November-09-14, 03:32 PM

Detroit must find a way to pay the Interest at fixed intervals.

**Hypestyles** · November-09-14, 10:04 PM

what kind of dramatically new revenue -generating projects have been proposed?

**animatedmartian** · November-09-14, 11:25 PM

I'm pretty sure that $1.5 billion dollars Orr is referring to is the amount owed to FGIC and Sycora before the bankruptcy deal. Specifically, the $1.5 billion loan that Kwame took out in 2005 to cover pension obligations.

With the bankruptcy deal the city made with both creditors, they each will get 14 cents on the dollar to their claims as well as land and parking garages downtown. The $1.5 billion dollar figure doesn't exist anymore.

**123456789** · November-09-14, 11:31 PM

He clearly did not say that. The original borrowing that was insured mostly by Syncora and FGIC was for 1.5 billion dollars. That was settled for land that must be developed to ensure recovery as well as other cash generating assets.

**motz** · November-10-14, 10:14 AM

Originally Posted by 123456789

He clearly did not say that. The original borrowing that was insured mostly by Syncora and FGIC was for 1.5 billion dollars. That was settled for land that must be developed to ensure recovery as well as other cash generating assets.

But you see,
Willi knows what Kevyn Orr REALLY SAID
and that is what actually
Matters.

Plus this deal supports art, which obviously means wasteful spending and out of control public spending on something that is Very Stupid and Very Useless.

Yo Willi, like everyone else said, read into it. It's the amount KK borrowed to try and 'save the city' by covering up his own stupidity.

**mikeg19** · November-10-14, 01:34 PM

Amazing how people hear and read what they wanna hear and read. It's almost as bad as the completely out of context political ads. Deep, husky voice on tv: "Did you know that Governor Snyder personally cut the education budget and bought boats for his friends? He also hates you and wants to foreclose on your home.....Vote Schauer"

**belleislerunner** · November-10-14, 01:46 PM

There won't be a 2.0 because there won't be any assets left - the DIA is going to private hands, the water department just went regional. Cobo is regional. Please identify the assets in 2020 you'd try to cash out. The beauty for Detroit is there are not "city assets" left for creditors to get other than vacant land - and their dollars for redevelopment are just as great as our dollars for redevelopment.

Willi · November-10-14, 08:58 PM

$1.5 billion of the $5.2 billion in outstanding water department debt
- was offered back to the city.

- a majority of bondholders would accept the offer to sell back their bonds in exchange for new 30-year bonds

- In addition to the water department taking back $1.5 billion in tendered bonds, for new debt, the city will drop its original plan to impair the rest of the untendered shares, which were facing an interest rate cut and the loss of a provision that prevents the city from paying them off early and lowering the overall yield to investors.

- It leaves those bondholders with no standing to challenge the bankruptcy. Meanwhile, the bondholders who tendered their shares will, in many cases, receive more than the original face value of the old bonds, and get new ones running another 30 years at interest rates of up to 4.75 percent.

The BondHolders own Detroit - to the tune of $1.5 BILLION dollars

[[ perhaps some folks might due well to listen to the Flashpoint video )

**123456789** · November-11-14, 03:06 AM

Originally Posted by Willi

$1.5 billion of the $5.2 billion in outstanding water department debt
- was offered back to the city.

- a majority of bondholders would accept the offer to sell back their bonds in exchange for new 30-year bonds

- In addition to the water department taking back $1.5 billion in tendered bonds, for new debt, the city will drop its original plan to impair the rest of the untendered shares, which were facing an interest rate cut and the loss of a provision that prevents the city from paying them off early and lowering the overall yield to investors.

- It leaves those bondholders with no standing to challenge the bankruptcy. Meanwhile, the bondholders who tendered their shares will, in many cases, receive more than the original face value of the old bonds, and get new ones running another 30 years at interest rates of up to 4.75 percent.

The BondHolders own Detroit - to the tune of $1.5 BILLION dollars

[[ perhaps some folks might due well to listen to the Flashpoint video )

This is called refinancing debt. Probably saving millions in interest payments.

**Wesley Mouch** · November-11-14, 11:15 AM

Originally Posted by belleislerunner

There won't be a 2.0 because there won't be any assets left - the DIA is going to private hands, the water department just went regional. Cobo is regional. Please identify the assets in 2020 you'd try to cash out. The beauty for Detroit is there are not "city assets" left for creditors to get other than vacant land - and their dollars for redevelopment are just as great as our dollars for redevelopment.

Do you think the structure's Orr left behind can withstand the fight by activists and the progressive party against civic responsibility?

[[While I'm at it, isn't it funny that Schauer and the Democrats were in favor of a property tax exemption for seniors -- but complain at the same time about the nobility of paying for taxes for the services we so desperately need? Just who do they think should pay if not rich seniors?)

**ABetterDetroit** · November-11-14, 05:41 PM

Originally Posted by mikeg19

Amazing how people hear and read what they wanna hear and read. It's almost as bad as the completely out of context political ads. Deep, husky voice on tv: "Did you know that Governor Snyder personally cut the education budget and bought boats for his friends? He also hates you and wants to foreclose on your home.....Vote Schauer"

Boats for his friends? Damn! That explains everything... They have plenty of time for trolling these boards because they don't have to work when they get their boats for free from Snyder!

Willi · November-13-14, 12:14 AM

Of course you can always trust the Banks, Hedge Fund Managers, and Insurance Salesmen

http://time.com/3153262/bank-of-amer...ubprime-loans/

Syncora isn't even on USA soil, they exist "offshore"
a Bermuda-domiciled holding company.

Bank of America barely flinched when hit with fines because they
make ton's of money per second, all day, every year.

Willi · November-17-14, 03:57 PM

Everyone trusts Syncora, with zero doubts, no reservations, completely and whole ?

I put them right next to Bank of America

Syncora has insured principal and interest payments to investors in the MBS
mortgage-backed securities game

This what they do :
""We guarantee US municipal bonds; asset-backed securities; debt backed by utilities
and selected infrastructure projects; specialized risks, including future flow securitizations
and bank deposit insurance; and collateralized debt obligations [[CDOs).
We provide a financial guarantee that is unconditional and irrevocable and, in the process,
help clients overcome a broad spectrum of strategic, competitive and financial challenges""

In the past :
Syncora has been forced to suspend claims payments
and had its license revoked in a handful of states.
http://www.bondbuyer.com/issues/118_137/-305453-1.html

**Hypestyles** · November-17-14, 05:45 PM

syncora should have been battled to the end. Oh well.

Willi · November-23-14, 09:44 AM

$$$$ Millions in lawyers fees, literally like 2 Hundred Million dollars in fees are now on the backs of taxpayers !

Insane amounts of 800 dollars an hour were charged, fleecing the taxpayers of Michigan. Basically slapping us in the face and kicking us in the groin, saying pay up punks.

**compn** · November-23-14, 12:15 PM

Originally Posted by Wesley Mouch

Do you think the structure's Orr left behind can withstand the fight by activists and the progressive party against civic responsibility?

a better question, do you think the structure Orr left behind can withstand reality?

**Wesley Mouch** · November-23-14, 01:10 PM

Originally Posted by compn

a better question, do you think the structure Orr left behind can withstand reality?

Its a good question. I think Nolan Finley hit this question with his 'was there enough pain in bankruptcy to change our thinking?' argument.

I suspect that city workers and retirees would probably look at things differently and factor in whether their decisions are harmful to the City's finances. The voters, I believe, continue to favor the political blame game wherein the problem was Republicans, and not the 50+ years of Democratic local control. It was all done to us. We were perfect and only failed because you didn't fund all of our progressive initiates fully.

I'm not sure Orr's structure can withstand the pressure. The basic idea as I understand it is similar to NYC's plan. That worked, although you could argue that Bratton & Co. and their success in controlling crime was what kept everyone from fleeing to NJ & beyond.

Willi · November-23-14, 09:32 PM

Maybe folks "" woke the efff up"" and started using their own brains to comprehend reality -- instead of trusting a union boss, steward , and/or
politicians, officials etc. Mob mentality , following blindly like sheep, is now over in the D.

People aren't all that stupid with mortgages, car payments, bills, and kids to manage. They can think, but often choose not to, taking the easy way out. Now they got burned, and learned a hard lesson.