Detroit Emergency Manager Kevyn Orr said Friday the city has secured a $350 million loan that will be used to pay off a pension related-debt and finance improvement of government services while the city is in bankruptcy.
Orr said the city is securing the financing from Barclays with income and casino tax revenues as well as cash proceeds from “any potential monetization of City assets that exceeds $10 million,” according to a news release.
Under the terms of the secured loan, there’s “no requirement” that the city sell assets, Orr spokesman Bill Nowling said.
Since Detroit filed for bankruptcy in July, Orr has been trying to secure the post-petition financing to end a complicated interest rate swap agreement with UBS AG and Bank of America that was tied to $1.44 billion the city borrowed in 2005-2006 to pump up its ailing pension fund.
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