Detroit City Council Rejects Plan For $350M Loan
DETROIT (AP) - Detroit City Council has rejected plans for a $350 million loan to help the cash-strapped city pay off some of its massive pension debt.
The proposal still could go forward despite Monday's vote. Judge Steven Rhodes, who is overseeing the city's bankruptcy case, is expected to make a decision later on whether to approve the deal.
State-appointed emergency manager Kevyn Orr announced the financing earlier this month. 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 and city government technology infrastructure.
The loan would be secured with pledges of casino and income tax revenue, and proceeds from the sale of city-owned of assets that top $10 million.
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