City of Detroit threatens to sue banks for better loan deal - New York News

City of Detroit threatens to sue banks for better loan deal

Posted: Updated:
(WJBK) -

The city of Detroit made major threats Friday to sue banks that could possibly take all of Detroit's casino money. In fact, the judge urged all parties to this $350 million loan, and who gets the money, to negotiate.

In fact, the judge says he wants all parties to work Christmas Eve, New Year's Eve and possibly even Saturday in order to get a deal that makes sense for everybody. He also ordered Kevyn Orr to cut his holiday vacation by giving a deposition here in Detroit instead of his hometown in Washington, and that would take place on New Year's Eve.

Obviously, the judge is very serious about moving this bankruptcy along in a quick manner.

So, why the urgency?

The bottom line - Detroit needs money, but Detroit can't prefer one creditor over another. And the deal that has been kicked around right now of 75 cents for one bank just doesn't cut it with this judge.

Finally, the judge wants to keep the momentum to try to settle this case alive. He believes that if all parties work together under the pressure, both of the holidays and of the court, that this case possibly - the entire bankruptcy - could go in a major step forward.

The judge also ruled that the law challenging the emergency manager law can move forward, but he also said Kevyn Orr is protected no matter what happens in the case.

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