Detroit secures $350M loan to help pay off debt - New York News

Detroit secures $350M loan to help pay off debt

Posted: Updated:
(WJBK) -

DETROIT (AP) - 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. The city says the new loan allows them to pay off other debts that carry a higher interest rate.

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.

A spokesperson for Orr, Bill Nowling, says the investment shows creditors are still willing to invest in Detroit, but that we are still on the road to financial recovery. "Everything that we're dealing with in the city is 60 years in the making. You're not going to fix it all in six months. People have to be patient a little bit about that. We understand they want to see services turned around right away, but it takes time. We have to restructure government. Government has to be able to function properly so they can fix those services," Nowling tells Fox 2.

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.

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

 

The Associated Press contributed to this report.

  • Download the FOX 2 Apps


  • FOX 2 News Five-Day Forecast
  • Local NewsLocal NewsMore>>

  • Fatal boat explosion on Long Island

    Fatal boat explosion on Long Island

    Wednesday, August 20 2014 9:56 PM EDT2014-08-21 01:56:27 GMT
    Detectives from the Nassau County Homicide Squad are investigating an explosion that destroyed a boat, burned two docks, and killed one person in Manorhaven on Wednesday afternoon. Two dock workers and two boaters were gassing up a docked 33-foot Carver motor boat just after 2:45 p.m. when an explosion tore through the boat, setting it and the dock on fire, police said.
    Detectives from the Nassau County Homicide Squad are investigating an explosion that destroyed a boat, burned two docks, and killed one person in Manorhaven on Wednesday afternoon. Two dock workers and two boaters were gassing up a docked 33-foot Carver motor boat just after 2:45 p.m. when an explosion tore through the boat, setting it and the dock on fire, police said.
  • Helmsley Building lights up in gold

    Going gold for pediatric cancer research

    Going gold for pediatric cancer research

    Wednesday, August 20 2014 9:22 PM EDT2014-08-21 01:22:24 GMT
    The Helmsley Building in Manhattan went gold Wednesday night in honor of children with cancer. The owners also plan to do the same in September for Pediatric Cancer Awareness Month.Other city landmarks that will go gold next month include Times Square, the Coney Island Parachute jump, and all of Bay Ridge, Brooklyn.
    The Helmsley Building in Manhattan went gold Wednesday night in honor of children with cancer. The owners also plan to do the same in September for Pediatric Cancer Awareness Month.Other city landmarks that will go gold next month include Times Square, the Coney Island Parachute jump, and all of Bay Ridge, Brooklyn.
  • Bed bug infestation at money firm PIMCO, report says

    Bed bug infestation at money firm PIMCO, report says

    Wednesday, August 20 2014 6:55 PM EDT2014-08-20 22:55:02 GMT
    A big money management firm in New York City has been hit with a major infestation of bed bugs, according to Fox Business Network. Stock traders who do business with Pacific Investment Management Co., better known as PIMCO, told Fox Business' Charles Gasparino that hundreds of people have been relocated from one of the firm's buildings in New York City to an undisclosed upstate location after reports of widespread bed bug bites among executives and employees.
    A big money management firm in New York City has been hit with a major infestation of bed bugs, according to Fox Business Network. Stock traders who do business with Pacific Investment Management Co., better known as PIMCO, told Fox Business' Charles Gasparino that hundreds of people have been relocated from one of the firm's buildings in New York City to an undisclosed upstate location after reports of widespread bed bug bites among executives and employees.
Powered by WorldNow
Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | New Terms of Service What's new | Ad Choices