Friday, April 11, 2014
(Detroit, MI) -- A proposed loan to settle a controversial debt has been approved by U.S. Bankruptcy Judge Steven Rhodes. The City of Detroit will pay UBS AG and Bank of America 85-million dollars to settle the debt on a pension loan. The judge had previously denied two other proposed settlements valued at 230-million dollars and 165-million dollars respectively. The two banks will receive 31-cents on the dollar under the proposed settlement while the City of Detroit will see a savings of around 187-million dollars in interest payments.