Detroit, Banks Reach New $85M Deal To End Swap Contracts

Law360, Los Angeles (March 3, 2014, 11:53 PM EST) -- The city of Detroit said Monday that it has reached a new, $85 million settlement to end swaps agreements with UBS AG and Bank of America Corp.'s Merrill Lynch Capital Services LLC, after a Michigan bankruptcy judge deemed previous deals too expensive.

Under the proposed pact, the bankrupt city would get access to much-needed casino revenues and wouldn't be allowed to sue UBS and Merrill Lynch, while they would agree to support the city emergency manager's plan of adjustment, according to Monday's motion seeking its approval....
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