{"id":5573,"date":"2014-01-21T00:00:00","date_gmt":"2014-01-21T06:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2014\/01\/detroit_mi_cant_pay_ubs_bank_o_1"},"modified":"2022-05-05T12:25:53","modified_gmt":"2022-05-05T17:25:53","slug":"detroit-mi-cant-pay-ubs-bank-o-1","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/detroit-mi-cant-pay-ubs-bank-o-1\/","title":{"rendered":"Detroit, MI Can\u2019t Pay $165M to UBS & Bank of America For Swaps Deal, Rules Judge"},"content":{"rendered":"\n

A bankruptcy judge says is refusing to grant the city of Detroit, MI permission to pay $165 million to Bank of America (BA)<\/a> and UBS AG (UBS) <\/a>to end an interest-rate swaps deal that taxpayers have been paying $202 million for since 2009. U.S. Bankruptcy Judge Steven Rhodes says the payment, in addition to a fee of over $4 million, is too costly for the beleaguered city. <\/p>\n

Rhodes said he doesn\u2019t believe it is in the city\u2019s best interests to make this deal. Detroit filed the biggest municipal bankruptcy in US history due to its $18 billion debt. Prior to seeking bankruptcy protection, the city had arrived at a deal to terminate the swaps contract that it had signed with Bank of America unit Merrill Lynch (MER)<\/a>, UBS, and SBS Financial Products Co. for $230 million.<\/p>\n

According to their 2009 deal, the banks are entitled to seek control of Detroit\u2019s casino taxes, which the city pledged as cash to UBS and Bank of America. Now, Detroit may have to submit an emergency motion asking the court to protect the cash so that the banks don\u2019t take the funds.<\/p>\n

Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

A bankruptcy judge says is refusing to grant the city of Detroit, MI permission to pay $165 million to Bank of America (BA) and UBS AG (UBS) to end an interest-rate swaps deal that taxpayers have been paying $202 million for since 2009. U.S. Bankruptcy Judge Steven Rhodes says the payment, in addition to a […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3751,3752,3800,3755],"tags":[],"class_list":["post-5573","post","type-post","status-publish","format-standard","hentry","category-bank-of-america","category-financial-firms","category-merrill-lynch","category-ubs"],"yoast_head":"\nDetroit, MI Can\u2019t Pay $165M to UBS & Bank of America For Swaps Deal, Rules Judge — Investor Lawyers Blog — January 21, 2014<\/title>\n<meta name=\"description\" content=\"A bankruptcy judge says is refusing to grant the city of Detroit, MI permission to pay $165 million to Bank of America (BA) and UBS AG (UBS) to end an — January 21, 2014\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, 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