Detroit Bankruptcy: Hearing to continue on pension debt payment - New York News

Detroit Bankruptcy: Hearing to continue on pension debt payment deal

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DETROIT (AP) -- A bankruptcy court hearing on Detroit's renegotiated deal to pay off two banks in an interest rate swaps deal is scheduled to resume.
 
Closing arguments are set to start Monday morning in Detroit.
 
The city pledged casino tax revenue in 2009 as collateral to avoid defaulting on pension debt payments. The swaps allowed Detroit to get fixed interest rates on pension bonds with UBS and Bank of America.
 
Orr and the banks initially reached a $220 million payoff, but bankruptcy Judge Steven Rhodes ordered the city to negotiate a better deal.
 
A new $165 million deal to terminate the swaps agreement was reached late last month. Rhodes still has to approve the deal.
 
State appointed emergency manager Kevyn Orr has testified that the new proposal is best for the city.

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