Bankruptcy Judge Steven Rhodes asked the city of Detroit to provide more specifics on the terms and planned expenditures of a $120 million loan to improve city services, the Detroit News reported today. Judge Rhodes, in a two-page order released on Monday, ordered the city to turn over the details by Friday of the proposal between the city and London-based investment bank Barclays that’s been opposed by some city creditors. A bankruptcy court hearing on the deal is scheduled for April 2.
http://www.detroitnews.com/article/20140325/METRO01/303250070/Detroit-b…
In related news, the Bankruptcy Judge Steven Rhodes wants to appoint at least one of his own expert witnesses to help him evaluate Detroit’s proposed debt-cutting plan, the Wall Street Journal reported today. The unusual move comes as Judge Rhodes is scheduling hearings to consider the city's road map to restructure an estimated $18 billion in long-term obligations by paying secured creditors in full, paying pension funds a reduced amount and giving other unsecured creditors a smaller fraction of the debt outstanding the city owes. With the savings and additional financing, city officials plan to spend $1.5 billion over 10 years for capital improvements, blight removal and equipment and technology upgrades to make the city safer, cleaner and more efficient. (Subscription required.)
http://online.wsj.com/news/articles/SB100014240527023039497045794617602…