Judge Steven Rhodes of the Eastern District of Michigan Bankruptcy Court, Detroit Division, is reviewing the proposal to pay off the City of Detroit’s bankruptcy Creditors. The plan was submitted by the city’s bankruptcy lawyers.
The Bankruptcy Court in Detroit was closed on Monday, January 6th, and Tuesday, January 7th. The court is set to reopen tomorrow, January 8th.
DETROIT (AP) — A judge overseeing Detroit’s bankruptcy is considering a recent agreement to pay off banks and settle millions of dollars in debt tied to an interest rate swap deal.
A hearing continues Friday that examines the proposal reached last month to terminate the swaps deal for $165 million. The payoff had been $220 million, and Judge Steven Rhodes ordered the city to seek a better deal with the banks.
Detroit pledged casino tax revenue in 2009 as collateral to avoid defaulting on past pension debt payments. The swaps allowed Detroit to get fixed interest rates on pension bonds with UBS and Bank of America.
The city also has agreed to lower a financing loan to pay the banks.
Fox 2 Detroit: http://www.myfoxdetroit.com/story/24354995/detroit-bankruptcy-judge-reviews-new-deals-to-pay-off-debt#ixzz2pk04yPLi
