UPDATED: Bankruptcy judge does Detroiters a solid, says Emergency Manager’s debt swap deal is “too generous” to banks
Please, sir, may I have some more?
[Photo by Chris Savage | Eclectablog]
Steven Rhodes, the federal judge overseeing Detroit’s Chapter 9 bankruptcy, halted discussions on Emergency Manager Kevyn Orr’s plan to borrow $350 from Barclay’s bank to retire some terribly negotiated debt swaps, effectively moving banks to the head of the line in the bankruptcy proceedings. In what can only be described as doing the residents of Detroit — particularly the retirees — a solid, Rhodes described the deal as being “too generous” to the banks.