Judge Approves $120 Million Loan For Detroit

Thursday, April 3, 2014

By Quinn Kleinfelter

Judge Approves $120 Million Loan For Detroit by WDET

Federal Judge Steven Rhodes had rejected two previous agreements Detroit reached to secure the loan…saying they were bad deals that primarily paid-off two banks and a pension debt that had soured.

This time the judge approved the agreement with the bank Barclays…which targets most of the loan funding towards improving Detroit’s police and fire departments…and tearing down blighted buildings that are magnets for crime.

The loan approval comes as the city presents a new plan to emerge from bankruptcy…and cut its pension obligations.

Representatives of city retirees vow they will fight the plan…and argue the pension obligations could be addressed by other means than making cuts…such as selling the lucrative collection at the Detroit Institute of Arts.

Find more coverage of Detroit's bankruptcy and its impact on people and neighborhoods on WDET's Next Chapter Detroit blog.

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