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.

Class 1

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.

Class 5

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."

Class 7

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.

Class 8

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.

Class 9

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.

Class 10

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.

Class 11

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.

Class 12

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.

Class 13

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.

Class 14

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.

Class 15

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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