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.
Orr said he instructed his negotiating team to tell the banks: "You've got to be below 100 to be serious."
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
- Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events
- Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
