Detroit objectors ask court to adjourn settlement hearing to April 14

By Kali Hays

New York, March 28 - Objectors to the City of Detroit's proposed settlement and plan support agreement between the city, UBS AG and Merrill Lynch Capital Services, Inc. have requested that the approval hearing be adjourned to April 14, according to a Friday filing with the U.S. Bankruptcy Court for the Eastern District of Michigan.

As previously reported, the proposed $85 million settlement resolves all claims related to the parties' pension swaps arrangements.

Specifically, the objectors are seeking the adjournment because of supplements amending and making technical changes to the agreement, and claim the city "did not provide the actual 25-page settlement agreement, nor the final form of the proposed order, nor the documents relevant to the city's settlement motion until over three weeks after filing the settlement motion," the filing stated.

The objectors further claimed the changes to the settlement agreement "diminish the city's obligations as compared to the term sheets" and therefore "require careful review."

Detroit filed bankruptcy on July 18, 2013 under Chapter 9 case number 13-53846.

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