Detroit secures $350M loan to help pay off debt

Friday, October 11, 2013

Michigan Gov. Rick Snyder, right, and State-appointed emergency manager Kevyn Orr address reporters during a news conference on Friday, July 19, 2013, in Detroit. On Thursday, Detroit became the largest city in U.S. history to file for bankruptcy when Orr asked a federal judge for municipal bankruptcy protection. (AP Photo/Carlos Osorio) (AP Photo)

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DETROIT -- Detroit's state-appointed emergency manager says a $350 million loan has been secured to help the city pay its way out of a complicated deal involving major creditors.

Kevyn Orr said Friday that the money committed by Barclays will help with Detroit's reconstruction as he tries to take the city into the largest municipal bankruptcy in U.S. history.

The loan still has to be approved by a bankruptcy court judge.

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About $230 million would be used to pay off some obligations related to its pension debt. The rest would be used to improve basic city services and technology infrastructure.

The city says the loan is secured with pledges of casino and income tax revenue, and cash from the potential value of assets that exceed $10 million.

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