Detroit said in a court filing yesterday that it had reached an agreement with Barclays PLC for a $120 million loan that would allow it to invest in services and speed its path out of bankruptcy, Reuters reported today. The deal comes after the judge overseeing Detroit's historic bankruptcy case rejected a $350 million loan that would have raised $230 million for the city to end interest rate swaps. Those swaps were used to hedge interest rate risk on some Detroit pension debt. The city said earlier this week that it had reached a new agreement with Merrill Lynch Capital Services and UBS AG to end the swaps for $85 million. Two prior proposed deals with bigger price tags were rejected by U.S. Bankruptcy Judge Steven Rhodes.
