Bankruptcy judge: Detroit casino revenue protected - FOX 35 News Orlando

Bankruptcy judge: Detroit casino revenue protected

Posted: Updated:
DETROIT, Mich. (AP) -

A federal judge overseeing Detroit's Chapter 9 petition has ruled that a bond debt insurer cannot take casino tax revenue while the city is seeking bankruptcy protection.

Judge Steven Rhodes said Wednesday that the city's tax revenue from its three casinos is protected while halting Syncora Guarantee's efforts to collect up to $15 million each month.

Syncora insures the city's bond debt tied to pensions.

Detroit emergency manager Kevyn Orr filed suit last month to stop Syncora from withholding the monthly casino revenue.

A Wayne County judge granted Detroit's request for a restraining order. That stopped U.S. Bank from refusing to make payments to the city. The bank holds the money in a trust.

Detroit filed for bankruptcy on July 18. It's the largest municipal filing in U.S. history.

Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Powered by WorldNow

35 Skyline Drive
Lake Mary, FL 32746

Phone: (407) 644-3535
News Tips: (866) 55-FOX35

Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | New Terms of Service What's new | Ad Choices