The city of Detroit is still putting the finishing touches on a bankruptcy debt settlement with two global banks, the Detroit Free Press reported today. A Detroit bankruptcy attorney told Bankruptcy Judge Steven Rhodes that the city is still finalizing documents related to its deal to pay $85 million to eliminate a $288 million “swaps” debt with Bank of America Merrill Lynch and UBS. The settlement is not a done deal until the city and the banks give their final approval and until Judge Rhodes signs off. Judge Rhodes — who has twice rejected previous swaps settlements as too generous for the banks — has set a April 3 hearing to consider approval of the new deal.
