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Ruling on Detroit pension deal expected next week

DETROIT (WKZO) -- U.S. Bankruptcy Judge Steven Rhodes is expected to rule next Friday on Detroit's proposed pension debt settlement. Thursday, Judge Rhodes said he will make a decision on April 11th on whether he'll allow Detroit to pay two banks roughly 85-million dollars for the debt.

The judge set the date following a daylong hearing over a complex interest rate swap tied to the approximately 1.4-billion dollars the city borrowed in 2005-2006 to aid its ailing pension funds. It is the third settlement agreement to go before Rhodes, but he had rejected the previous two.