(Bloomberg) -- Detroit reached a new settlement in a bid to end interest-rate swap contracts with UBS AG and Bank of America Corp., cutting the termination amount to about $165 million from $230 million.

The settlement was presented to a mediator, U.S. District Judge Gerald Rosen, yesterday in federal court in Detroit, according to a transcript. The agreement still requires bankruptcy court approval. The next hearing in the case is scheduled for Jan. 3.

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