The Detroit Water and Sewerage Department plans to come to market with $150 million of new-money sewer bonds in June, despite questions about the water and sewer system's future amid Detroit's bankruptcy, BondBuyer.com reported yesterday. The Michigan Finance Authority will act as the conduit on the deal and proceeds will finance capital improvements for the year. A restructuring of the system's outstanding $4 billion of debt could also be on the horizon as a consequence of Detroit's chapter 9 proceedings. The borrowing comes at a crucial time for the department, which is the object of heated negotiations between the city and adjacent counties. Detroit emergency manager Kevyn Orr wants to lease the system — one of Detroit's strongest assets — to a new regional authority in exchange for an annual payment. The deal has stalled amid disputes over capital costs, uncollected bills, and other disagreements. (Subscription required.)
http://www.bondbuyer.com/issues/123_57/detroit-will-sell-new-sewer-bond…
In related news, Detroit Emergency Manager Kevyn Orr said that time is running out for creditors to reach an agreement with the city on a plan to resolve the biggest U.S. municipal bankruptcy by reducing $18 billion in debt, Bloomberg News reported yesterday. Creditors know all about the city’s finances and don’t need any more information, Orr said yesterday. He said that in the next couple weeks, he hopes to have enough agreement among creditors to get a debt-adjustment plan enacted by fall. Detroit entered bankruptcy July 18.
http://www.bloomberg.com/news/print/2014-03-24/detroit-s-orr-says-time-…