Bing: Detroit Will Miss Friday Payment if Suit Not Dropped

Detroit Mayor Dave Bing warned this morning that the city will miss a $34.2 million bond payment due on Friday unless the city’s top lawyer drops a lawsuit challenging the two-month-old consent agreement between the city and the state. Michigan treasury officials last week told Detroit that the state would not release roughly $80 million held in escrow from a recent privately placed bond sale unless Detroit Corporation Counsel Krystal Crittendon dropped the challenge to the consent decree. Bing wants the suit dropped, but he alone can’t force the dismissal under the city’s charter.

- Bond Buyer