Detroit City Council to vote on $120 million bankruptcy loan

DETROIT (WXYZ) - Detroit City Council delayed a vote on a $120-million bankruptcy loan.

Should the vote pass, the Barclay's loan would further expedite the improvement of city services like blight reduction, park maintenance, and new police cars.

Lead by Emergency Financial Manager Kevyn Orr, the loan's ultimate approval falls on the shoulders of US Bankruptcy Judge Steven Rhodes. Council also plays a role in the loan's approval. Should they vote it down, they will have a week to come up with an alternate plan.

From there the state's Emergency Loan Board would choose between Council's proposal and Orr's plan.

Following Friday morning's meeting, Councilwoman Saunteel Jenkins told Action News there is no alternate plan at this time. She believed Orr's deal was probably the best the city could receive while in bankruptcy, but council members wanted additional information before voting.

Council was given a 120-page document detailing the loan, but four pages of exhibits were missing. Orr's office is working to get members they information so they an vote when they reconvene at 4:00 p.m.

 

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