- Posted September 16, 2014
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Detroit bankruptcy creditor apologizes to judge, attorney
DETROIT (AP) - A major creditor in Detroit's bankruptcy case has apologized to two mediators who brokered a deal that prevents the sale of city-owned art and puts millions of dollars into underfunded pensions.
Syncora had accused U.S. Distrcit Court Chief Judge Gerald Rosen, Eastern District of Michigan, and Eugene Driker of "naked favoritism" in their role as mediators. They were accused of stiffing other creditors in order to help city retirees and the Detroit Institute of Arts.
Syncora lawyers also took a jab at Driker's wife, who is a former museum trustee. In a court filing Monday, Syncora attorney James Sprayregen says the legal team is "deeply sorry" for "any unfounded aspersions."
In response, Judge Steven Rhodes says Syncora no longer will face sanctions. He had called the criticism "scandalous and defamatory."
Published: Tue, Sep 16, 2014
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