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Major settlement puts Detroit closer to bankruptcy exit
Major settlement puts Detroit closer to bankruptcy exit

DETROIT (Reuters) - Detroit announced on Thursday a last-minute settlement with its final major holdout creditor, Financial Guaranty Insurance Co [FGIC.UL], as it edged closer to exiting the biggest-ever municipal bankruptcy. The settlement includes an option for FGIC to develop the Joe Louis Arena and parking garage for a mixed-use project, primarily a hotel serving the nearby Cobo convention center, according to Corinne Ball, an attorney at law firm Jones Day which represents Detroit in the case. The bond insurer will also receive about $152 million in city notes, part of which will be backed by public parking revenue, as well as $19.7 million in credits it can apply for purchasing...

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