DETROIT — Detroit has reached a tentative deal with one of its key creditors that could remove the biggest stumbling block in the city's plan to reduce its debts and emerge from bankruptcy protection, according to a federal court filing Tuesday evening. The joint filing by the city and bond insurer Syncora Guarantee said that they "have reached an agreement in principle" to settle the company's $400 million claim in the nation's largest-ever municipal bankruptcy case.
The two sides say they need 48 hours to complete the deal and ask Judge Steven Rhodes for a postponement of the bankruptcy case trial until Friday. "If this agreement is finalized within this time period as we expect, it will profoundly alter the course of the proceeding and the litigation plan of the remaining parties," the filing said.
Syncora Guarantee and fellow bond insurer Financial Guaranty Insurance Co. have been leading a small group of creditors fighting the plan by state-appointed emergency manager Kevyn Orr. The Associated Press left a message Tuesday night seeking comment from Orr spokesman Bill Nowling.
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