creditors

When you look back at the long history of Detroit, yesterday may not have been quite as significant as July 24, 1701.

That was the day Cadillac and his men beached their canoes, scrambled up the riverbank near where the Cobo Center now stands, and started building a fort. But yesterday comes somewhat close.

Yesterday was the day the last major holdout creditor came to terms with the city, in a way that should help improve the city’s chances to make it after the bankruptcy process ends.

This also seems to remove the last threat facing the Detroit Institute of Arts. Financial Guaranty Insurance Company will get the land where Joe Louis Arena now sits, the place where the Red Wings play and where, 34 years ago, I saw Ronald Reagan nominated for President. Eventually, when a new hockey arena opens, this will be torn down and a gleaming new luxury riverfront hotel built here, surrounded by condos and some new retail.

Ian Freimuth / Flickr

  

Two of the loudest voices objecting to Detroit's bankruptcy adjustment plan have been bond insurers Syncora and Financial Guaranty Insurance Corporation, known as FGIC. Both companies were left holding the bag in a $1.4 billion pension deal, the "swaps."

Things just got much colder and bleaker for FGIC. That's because Syncora and the city have struck an 11th-hour deal.

Syncora now is willing to receive 26 cents on the dollar of what it is owed, up from 10 cents under the city's previous plan, plus a package that includes an extended lease on operation of the Detroit-Windsor Tunnel and a parking deal.

DETROIT (AP) - While a judge determines the future of Detroit's bankruptcy case, key people are meeting behind the scenes to try to reach deals.

Private mediation sessions are scheduled for Wednesday, at the same time the city tries to convince a judge that Detroit is eligible to fix its debts in bankruptcy court. The trial in front of Judge Steven Rhodes started on Oct. 23.

This week in Michigan politics, Jack Lessenberry and Emily Fox discuss the proposal to consolidate school districts into county-wide systems, the canceled bus tour for Detroit creditors, and the new changes on the Detroit City Council.

During the last year of World War II, as millions died in history’s most sustained orgy of violence, other men quietly and secretly planned what to do after the war was over. They worked out the details of the division of Germany and the administration of Japan even before those countries had been occupied. Doing that in advance was essential.

Historians agree that was a precondition for Europe’s eventual recovery, and Japan’s rebirth as a prosperous democracy.  This advance planning also went a long way to prevent a new world war breaking out in the rubble of the old.

I mention this because I hope somebody is thinking about what to do when Detroit declares bankruptcy, and even more importantly, when that process is over. Planning how the city will begin the process back to some form of prosperity.