An attorney representing Detroit said yesterday that the city intends in coming days to propose a new settlement in bankruptcy court to end costly interest-rate swaps, the third such attempt since the city declared bankruptcy, Reuters reported yesterday. Robert Hertzberg, a partner at law firm Pepper Hamilton, told Bankruptcy Judge Steven Rhodes that the city will file a motion in the next three or four days. Judge Rhodes rejected two prior settlement proposals with swap counterparties UBS AG and Merrill Lynch Capital Services, calling them too costly for the city. Notice of the new deal came during a hearing on other matters in the city's historic bankruptcy, including whether Detroit is obliged to pay off voter-approved general obligation bonds and the need for an unsecured creditors committee in the case.
