Detroit Said to Reduce Swaps Debt by 25% in Deal With Banks
This article is for subscribers only.
Bank of America Corp. and UBS AG would accept 75 cents on the dollar from Detroit on $343.6 million in swaps liabilities in a deal with Kevyn Orr, the city’s emergency financial manager, according to a person familiar with the negotiations.
The city would refinance the remaining debt and would be guaranteed to receive about $11 million a month in casino-tax revenue, according to the person, who asked not to be identified because the negotiations are private.