CHICAGO — Detroit had to pursue a settlement with the interest-rate swap counterparties on its pension certificates or risk the "cataclysmic" loss of access to casino revenues, the city's investment banker told the bankruptcy court Tuesday.

The testimony came on the opening day of hearings slated for this week before U.S. Bankruptcy Court Judge Steven Rhodes on the city's proposed $350 million debtor-in-possession financing with Barclays Capital Inc. and the related settlement with its interest-rate counterparties.

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