Detroit's Bank Deal Benefits Go Far Beyond Debt Cuts

Law360, New York (March 4, 2014, 3:28 PM EST) -- The new deal Detroit struck Monday to substantially reduce $286 million in bank debt could be enormously beneficial not only with respect to its financial position, but the flexibility it offers to continue negotiations with other creditors and the crucial support it provides for Detroit's bankruptcy exit plan.

In court documents filed late Monday, the distressed city announced the terms of an agreement with UBS AG and Bank of America Corp.'s Merrill Lynch Capital Services LLC that, if approved by the bankruptcy judge overseeing Detroit's case,...
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