Detroit defaults on more than $600 million of 'unsecured' GO bonds

Reuters
'Detroit' is seen on the top of an iron man-hole cover on a street in Detroit
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'Detroit' is seen on the top of an iron man-hole cover on a street in Detroit, Michigan July 27, 2013. …

(Reuters) - Detroit on Tuesday defaulted on more than $600 million of general obligation bonds deemed unsecured by the city's emergency manager, a city spokesman said.

The move marked the second bond default by cash-strapped Detroit after Kevyn Orr, the former corporate bankruptcy attorney who has been running the city since March, announced on June 14 a moratorium on unsecured debt payments.

(Reporting by Karen Pierog)

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