Special Council Session Called For $350M Loan Plan

By: AP
By: AP

DETROIT (AP) -- The Detroit City Council is expected to discuss and possibly vote on a $350 million loan to help the city pay off some of its massive pension debt.

Council members also could discuss resolutions during Friday morning's special session for alternatives to the post-bankruptcy petition financial proposal engineered by state-appointed emergency manager Kevyn Orr.

About $230 million from Barclays would be used to fully pay off a complicated pension debt deal involving two major creditors. The rest would be used to improve basic city services.

Pledges of casino and income tax revenue, and proceeds from the sale of some city-owned of assets, would secure the loan.

Federal Judge Steven Rhodes is overseeing the city's bankruptcy case and is expected to make a decision later on whether to approve the deal.


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