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>>

  • Manhattan West Project

    Skyline of West Side is changing

    Skyline of West Side is changing

    Tuesday, July 22 2014 6:25 PM EDT2014-07-22 22:25:22 GMT
    The Manhattan West Project is a $4.5 billion development that will change the skyline on the West Side. The five-acre site that will consist of office towers, a residential building, retail, a 5-star hotel, health and fitness facilities, rooftop gardens, restaurants, cafes, and a park is being built on top of active rail yards. Fox 5 got a look at the progress of the project.
    The Manhattan West Project is a $4.5 billion development that will change the skyline on the West Side. The five-acre site that will consist of office towers, a residential building, retail, a 5-star hotel, health and fitness facilities, rooftop gardens, restaurants, cafes, and a park is being built on top of active rail yards. Fox 5 got a look at the progress of the project.
  • Anaconda sightings in Lake Hopatcong reported

    Anaconda sightings in Lake Hopatcong reported

    Tuesday, July 22 2014 5:59 PM EDT2014-07-22 21:59:16 GMT
    Boaters in Lake Hopatcong in New Jersey are keeping an eye out for an unwanted visitor lurking underwater: a 14- or 15-foot-ong snake, possibly a green anaconda. Several people have seen the reptile, which has probably holed up in a drain pipe. Reptile specialists are also searching the lake for signs of the snake. So far no more sightings have been reported.
    Boaters in Lake Hopatcong in New Jersey are keeping an eye out for an unwanted visitor lurking underwater: a 14- or 15-foot-ong snake, possibly a green anaconda. Several people have seen the reptile, which has probably holed up in a drain pipe. Reptile specialists are also searching the lake for signs of the snake. So far no more sightings have been reported.
  • Suspect arrested in 1990s cold-case murders on Long Island

    Suspect arrested in 1990s cold-case murders on Long Island

    Tuesday, July 22 2014 5:00 PM EDT2014-07-22 21:00:17 GMT
    SCPD photoSCPD photo
    Authorities on Long Island have arrested a suspect in two cold case murders dating to the 1990s. John Bittrolff, a married father of two, is the lead suspect in the deaths of two prostitutes whose bodies were found within months of each other in late 1993 and early 1994, authorities said. Police arrested the 48-year-old, who was arraigned at the district court in Central Islip.
    Authorities on Long Island have arrested a suspect in two cold case murders dating to the 1990s. John Bittrolff, a married father of two, is the lead suspect in the deaths of two prostitutes whose bodies were found within months of each other in late 1993 and early 1994, authorities said. Police arrested the 48-year-old, who was arraigned at the district court in Central Islip.
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 | Terms of Service | Ad Choices