CHICAGO - A federal bankruptcy court judge abruptly suspended hearings on Detroit's proposed $350 million debtor-in-possession financing and settlement with its interest-rate swap counterparties Wednesday and urged the city to use the time to renegotiate the swaps termination deal.

U.S. Bankruptcy Court Judge Steven Rhodes suspended the hearing Wednesday and scheduled a status conference for Friday at 10 A.M. Eastern Time, according to a Rod Hansen, a court spokesman. It's unclear when the hearings, which had been scheduled to continue through Thursday, might resume.

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