Contact Us

Emergency Manager: Detroit Debt Deal Necessary

Federal Judge Rules On Detroit Bankruptcy Eligibility
Getty Images

DETROIT (AP) — Detroit’s state-appointed emergency manager says an agreement to pay off banks and settle millions of dollars in debt tied to an interest rate swap deal would end a “sordid tale.”

Kevyn Orr testified Friday in federal court that the proposal to terminate the deal for $165 million is best for Detroit. He says it removes significant financial risks and allows the nation’s largest public bankruptcy restructuring to proceed.

The payoff had been $220 million, and Judge Steven Rhodes ordered the city to negotiate a better deal. He must approve the settlement that’s opposed by pension systems.

Detroit 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.

More from The Moose

Best of the Web

Leave a Comment

It appears that you already have an account created within our VIP network of sites on . To keep your points and personal information safe, we need to verify that it's really you. To activate your account, please confirm your password. When you have confirmed your password, you will be able to log in through Facebook on both sites.

Forgot your password?

*Please note that your points, prizes and activities will not be shared between programs within our VIP network.

It appears that you already have an account on this site associated with . To connect your existing account with your Facebook account, just click on the account activation button below. You will maintain your existing profile and VIP program points. After you do this, you will be able to always log in to http://mooseradio.com using your Facebook account.

*Please note that your points, prizes and activities will not be shared between programs within our VIP network.

Please fill out the information below to help us provide you a better experience.

Register on The Moose 95.1 FM quickly by logging in with your Facebook account. It's just as secure, and no password to remember!

Not a Member? Sign Up Here.

Sign up for an account to comment, share your thoughts, and earn points to get great prizes.

Register on The Moose 95.1 FM quickly by logging in with your Facebook account. It's just as secure, and no password to remember!