CHICAGO - U.S. Bankruptcy Judge Steven Rhodes said Friday he would rule Wednesday on a request from some of the city's creditors to delay a hearing on the city's interest-rate swaps settlement. The hearing on the swaps settlement is currently set for Thursday, April 3.
Rhodes granted a request from Syncora Guarantee Inc. and other bondholders for an expedited hearing on their request to delay the hearing at least 10 days. The current schedule gives the objectors only seven days to review the changes to the swaps settlement that the city released last week, they said in their request.
It will also give them additional time to review the deposition of Detroit emergency manager Kevyn Orr, scheduled for Monday, March 31.
A hearing on the city's plan of debt adjustment is scheduled for April 14, and the creditors argued that the swaps settlement hearing should be scheduled for around the same time.
The swaps settlement calls for Detroit to pay the two counterparties $85 million after the bankruptcy closes to terminate the contracts. That marks a 70% discount off of the current termination price tag, according to the banks and the city.
Rhodes granted the creditors' request for an expedited hearing on the delay request and said he would consider the delay request Wednesday at 9 a.m. The judge will also hear a dispute on the city's proposed $120 million loan with Barclays at the Wednesday hearing.
