DETROIT (WKZO) -- A settlement between the City of Detroit and creditors has reportedly been reached.
The deal was disclosed in court papers filed last Friday stemming from a lawsuit between the city and Syncora Guarantee Incorporated. Emergency Manager Kevyn Orr sought an injunction against the insurance company after they refused to forward casino profits to the city and allegedly used the money to pay creditors.
The insurer was involved in an agreement where they would collect casino profits as a trustee, make payments to creditors, and send the rest of the cash to the city. However, the insurance company allegedly kept all funds to pay off their investors.