Judge to decide on Detroit's deal to pay off debt - New York News

Judge to decide on Detroit's deal to pay off debt

Posted: Updated:
Judge Steven Rhodes Judge Steven Rhodes

DETROIT (AP) -- The bankruptcy judge overseeing Detroit's restructuring plans to issue his decision on a renegotiated interest rate swaps deal that could save Detroit millions of dollars.

A spokesman says Judge Steven Rhodes will rule from the bench Thursday afternoon on the $165 million deal reached last month with UBS and Bank of America Merrill Lynch.

The complicated deal before Rhodes involves the city's pledge to use casino tax revenue as collateral to avoid defaulting on pension debt. The swaps let Detroit get fixed interest rates on pension bonds.

An initial $220 million payoff was reached, but Rhodes said the city could do better.

State-appointed Detroit emergency manager Kevyn Orr says the deal is critical. He filed for bankruptcy protection in the face of a long-term municipal debt of about $18 billion.

  • Download the FOX 2 Apps


  • FOX 2 News Five-Day Forecast
  • Local NewsLocal NewsMore>>

  • Man struck and killed by NYC subway train

    Man struck and killed by NYC subway train

    Saturday, April 19 2014 3:19 PM EDT2014-04-19 19:19:38 GMT
    A man in his 60s was killed by an oncoming train in midtown Manhattan after jumping on the tracks to grab his personal belongings that fell.
    A man in his 60s was killed by an oncoming train in midtown Manhattan after jumping on the tracks to grab his personal belongings that fell.
  • Woman in custody in NYC stroller snatch attempt

    Woman in custody in NYC stroller snatch attempt

    Saturday, April 19 2014 2:55 PM EDT2014-04-19 18:55:51 GMT
    Police say an 8-month-old baby was nearly snatched by a stranger while being pushed down a Manhattan street in his stroller, but a bystander intervened to foil the abduction attempt.
    Police say an 8-month-old baby was nearly snatched by a stranger while being pushed down a Manhattan street in his stroller, but a bystander intervened to foil the abduction attempt.
  • Family of teen shot and killed by police sues NYC

    Family of teen shot and killed by police sues NYC

    The family of a 16-year-old Brooklyn boy whose fatal shooting by police last year sparked days of protests has filed a federal wrongful death lawsuit against New York City.
    The family of a 16-year-old Brooklyn boy whose fatal shooting by police last year sparked days of protests has filed a federal wrongful death lawsuit against New York City.
Powered by WorldNow
Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | Terms of Service | Ad Choices