I have to say, I did not see that coming. The debtor, creditor and mediator were all on board.

I fear that the counterparties will attempt to trap the cash, and the city will be worse off.

But it goes to show that bankruptcy is not a system to get "banks" paid. It's not [[generally) pro-creditor.

The swap counterparties are now looking at the same recovery as the other unsecureds: 10% or so.

That's more money in the pot for the other creditors. It may go to city services, but I don't think the city undertakes the Barclays loan. Who knows now.