March 20 (Bloomberg) — Detroit's proposal to pay $85 million to cancel interest-rate swaps that cost taxpayers more than $200 million, part of the city's attempt to trim debt in bankruptcy, won't be in final form until next week.
The city has struggled to get final wording for the deal with UBS AG and Bank of America Corp.'s Merrill Lynch unit, attorney Robert S. Hertzberg told U.S. Bankruptcy Judge Steven Rhodes today. Rhodes asked how he could be certain that the city will be ready to seek approval at an April 4 hearing.
Hertzberg assured the judge, who rejected a previous version of the proposal, that a final agreement will be ready on March 26. The settlement, a 70 percent reduction of what the city was liable for under the swaps agreement, will release Detroit from claims by the banks.
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