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Detroit pension funds attorney plans challenge of bank deal

A image of the Detroit skyline is seen on the podium where Detroit Emergency Manager Kevyn Orr and Michigan Governor Rick Snyder addressed the media about filing bankruptcy for the city of Detroit during a news conference in Detroit, Michigan July 19, 2013.
Credit: Reuters/ Rebecca Cook
A image of the Detroit skyline is seen on the podium where Detroit Emergency Manager Kevyn Orr and Michigan Governor Rick Snyder addressed the media about filing bankruptcy for the city of Detroit during a news conference in Detroit, Michigan July 19, 2013. Credit: Reuters/ Rebecca Cook

DETROIT (WKZO) -- An attorney for Detroit's pension funds says he will challenge a deal struck earlier this week to pay two banks more than 160-million dollars to settle a 2005 debt deal.

Thursday, lawyer Robert Gordon said the agreement reached on Tuesday will give UBS and Bank of America a huge windfall at the expense of the city of Detroit.  Under the deal, the city would borrow 285-million dollars, instead of 350-million dollars from London-based Barclays, with 165-million going to the banks and 120-million dollars going to city services.

U.S. Bankruptcy Judge Steven Rhodes is expected to consider the new agreement during a January 3rd hearing.

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