How Detroit's creditors voted on plan of adjustment
Detroit Free Press (MI), 2014-07-23
July 23 --Here's how Detroit's creditors voted on the city's plan of adjustment.
Water and sewer bondholders: Owed $5.8 billion
The city's offer: 100% of principal
How they voted: 119 sub-classes of bondholders voted no, while 32 voted yes.
Classes 2-4, 6
Secured general obligation bonds, other secured claims, U.S. Housing and Urban Development loans, parking bonds, owed $494 million (Classes 2-3); $90 million (Class 4); $8 million (Class 6)
The city's offer: 100%
How they voted: These creditors don't vote because they are receiving full payment.
Swaps, owned by Bank of America Merrill Lynch and UBS and insured by Syncora and Financial Guaranty Insurance Co. (FGIC): Owed about $288 million .
The city's offer: $85 million
How they voted: The banks voted "yes."
Limited-tax general obligation bonds, owned by Ambac Assurance and Black Rock control most of it, with Syncora holding a smaller amount: Owed $164 million .
The city's offer: 34%
How they voted: Bondholders representing 99.8% of the claims and the votes rejected the plan -- likely because the settlement has not been finalized. Black Rock and Ambac agreed to a tentative settlement, but all of the terms have not been released.
Unlimited-tax general obligation bonds, the lion's share controlled by bond insurers Assured, Ambac and National Public Finance Guarantee : Owed about $388 million
The city's offer: 74%
How they voted: 87% of bondholders representing 97% of the debt voted "yes" to approve the deal.
Pension obligation certificates of participation (COPs) insured by Syncora and FGIC and mostly owned by European banks and five major hedge funds that recently acquired about half of it: Owed $1.473 billion .
The city's offer: 0% to 10%
How they voted: An emphatic "no," with not a single "yes" vote.
Police and Fire Retirement System pensions: Owed $1.25 billion in underfunding.
The city's offer: 100% payment of their monthly pension checks and a reduction in annual cost-of-living adjustment (COLA) increases from 2.25% to 1%.
How they voted: 82% of police and fire pensioners representing 82% of the debt voted "yes" to support the deal.
General Retirement System pensions: Owed nearly $1.9 billion in underfunding.
The city's offer: 95.5% of their monthly pension checks, the elimination of COLA benefits and the clawback of excess annuity savings fund distributions from 2003-13.
How they voted: 73% of pensioners representing 73% of the claims voted "yes" to back the deal.
Retiree health care benefits: Underfunded by $4.3 billion .
The city's offer: 10%
How they voted: 88% of voters representing 85% of the claims voted "yes" to endorse the cuts.
Downtown Development Authority debt: Owed $33.6 million .
The city's offer: 10% to 13%
How they voted: The DDA voted "yes" to support the plan.
Other unsecured claims owed to a variety of creditors, including people who sued the city and won settlements, as well as city vendors that had contracts canceled: About $150 million , including a $26 million Macomb County water claim.
The city's offer: 10% to 13%
How they voted: This class voted no by a 53-47% margin in number and by a 61-39% margin in total claims.
Convenience claims: owed to variety of creditors with debts of $25,000 or less, with the total unknown.
The city's offer: 25%
How they voted: Voters rejected the offer by a margin of 55-45% in number and 58-42% in total claims
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