Syncora has filed a motion objecting to Detroit’s funding proposal for an overhaul to its street lighting system in what amounts to the first instance of a creditor trying to stop improvements to the city’s ailing services.
Syncora is the bond insurer that is also trying to block the city’s attempts to get out of a disastrous pension debt interest rate deal. The new motion Syncora filed today objects to the authorization of a planned transaction by the newly created Detroit Public Lighting Authority that would shift Detroit’s utility tax revenue from the city to the PLA.