(WXYZ) - Bankruptcy Judge Steven Rhodes will decide this week whether to allow a major objection to Detroit's plan of adjustment at trial starting next week, or sanction the creditor bringing it.
Syncora is a bond insurer that could lose hundreds of millions of dollars in Detroit's bankruptcy. An attorney for the company said in court they are the "hated minority" because they are a holdout.
Syncora alleges Detroit mediators gave "naked favoritism" to saving the collection from being sold at the Detroit Institute of Arts and softening pension cuts for Detroit retirees.
That so-called grand bargain gives $816-million only to retirees, not to other creditors.
A city attorney said Syncora is sandbagging and should be sanctioned