"The city agreed to pay the banks $85 million to eliminate a disastrous pension debt interest-rate bet brokered by Mayor Kwame Kilpatrick’s administration in 2005. As part of the settlement, the banks have agreed to support Detroit emergency manager Kevyn Orr’s bankruptcy restructuring plan in court.

The new settlement allows Detroit to escape a $286-million debt by paying 30 cents on the dollar. The city will save about $201 million, more than its annual Fire Department budget, for example.
U.S. Bankruptcy Judge Steven Rhodes, who must sign off for the settlement to take effect, rejected the city’s previous offers to pay off the swaps for $230 million and then $165 million. He questioned the legality of the original transaction, saying $165 million was “just too much money” and chiding the city for making hasty financial decisions.
“Assuming he likes this number, he saved the city of Detroit a great deal of money,” Wayne State University bankruptcy law professor Laura Beth Bartell said Monday night".


http://www.freep.com/article/2014030...ank-of-America

Of course "someone" will object to this deal, as usual...