Ambac Says Detroit's $165M Swaps Deal Is Still Too Costly

Law360, New York (January 2, 2014, 5:26 PM EST) -- Ambac Assurance Corp. on Thursday objected to a revised settlement that would terminate swaps agreements between bankrupt Detroit and UBS AG and Merrill Lynch Capital Services LLC, saying the most recent version of the deal is too costly.

Last week, the city submitted an amended version of the settlement in Michigan bankruptcy court under which it will pay $165 million to back out of the swaps transactions and receive access to much-needed casino revenues securing the transactions. The updated version came after the parties fought over...
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