Bond holders face low recoveries as Detroit misses interest payment

Monday, June 17, 2013

The emergency manager for Detroit has proposed a deal under which bond holders will receive less than 10 cents in the dollar

TAGS: Default

Comment by: Anonymous. Posted 10 years ago [2013-06-17 23:37:44]

I wonder, what is the advantage of negotiating selective payment failures outside bankruptcy? I understand that bankruptcy of corporate borrowers has the creditor-friendly feature that the shareholders get zeroed out and that this aspect is absent for a city such as Detroit. Still, reaching an agreement outside a bankruptcy court strikes me as near impossible. There are too many cats to herd.

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