The committee representing Detroit's retirees in bankruptcy proceedings yesterday withdrew its objection to a deal Detroit reached to end some interest-rate swap agreements, Reuters reported yesterday. The agreement that Detroit's emergency manager, Kevyn Orr, signed with swaps dealers Merrill Lynch Capital Services and UBS AG would end the interest-rate swap agreements at a discount rate of as much as 25 percent. In exchange, Detroit would save more than $70 million and the city would be able to stop making monthly payments from casino tax revenue to the counterparties. The city so far is offering retirees and other creditors far less than it has offered the swap counterparties. Detroit and other parties involved in the bankruptcy case, including the retiree committee, have been involved in mediation since September to try to resolve some of the issues in the case outside of court.
