July 29, 2014 at 9:06 pm

Trial on Detroit debt-cutting plan delayed by another week

U.S. Bankruptcy Judge Steven Rhodes on Tuesday delayed by another week the trial over Detroit’s debt-cutting bankruptcy exit plan.

Rhodes moved the trial to Aug. 21, more than a month later than originally planned.

The judge also trimmed the number of possible trial days from 28 days to 23 days and scheduled an Aug. 19 pretrial conference and hearing over the legality of the city’s settlement with the insurers of unlimited tax general obligation bonds.

Rhodes had initially planned to start a trial over Detroit’s plan to dump $7 billion in bankruptcy court in mid-July, but he has twice delayed the start of the proceedings.

The last delay was due to disputes between Detroit and bond insurer Syncora Guarantee Inc. over the holdout creditor’s massive documents requests.

Syncora had pushed to have the trial delayed until late September to allow for more time to gather evidence and take depositions of the city’s witnesses.