April 3 (Bloomberg) — Detroit's emergency financial manager, Kevyn Orr, said the city may be able to conclude its record $18 billion bankruptcy in October, less than 18 months after seeking court protection from creditors.
Orr told U.S. Bankruptcy Judge Steven Rhodes today that Detroit was "hoping" to exit by Oct. 15. Michigan's biggest city filed for bankruptcy in July after decades of decline, saying it couldn't pay creditors while also providing essential services to its 700,000 residents.
The emergency manager was in court today to seek approval of an $85 million settlement with UBS AG and Bank of America Corp. to end interest-rate swaps that have cost taxpayers $200 million since 2009. He testified that by Jan. 31, after earlier settlements fell through, he was prepared to sue if the banks didn't accept less than $100 million.
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