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Hearing over Detroit bankruptcy continues
DETROIT (NEWSCHANNEL 3) - A hearing continues Friday over Detroit's agreement to pay off banks and settle debt in an interest rate swap deal.
A judge will examine the proposal reached last month to end the swaps deal for $165-million. The payoff was $220-million.
The judge wants a better deal, and so does Detroit's two pension systems.
Detroit pledged casino tax revenue in 2009 as collateral to avoid defaulting on past pension debt payments.
The swaps allowed Detroit to get fixed interest rates on pension bonds with UBS and Bank of America.