A Michigan state panel on Friday approved four bond deals worth up to $1.1 billion which are needed for the city of Detroit to emerge from bankruptcy, plus the sale of city-owned land parcels needed for a new public bridge to Canada, the Lansing State Journal reported on Saturday. The Detroit City Council had previously approved the bond deals, which will be used to pay off various creditors who have agreed to the city’s latest plan of adjustment in bankruptcy, provide bankruptcy exit financing, and set aside money for creditors’ claims that are still disputed. The City Council had proposed an alternate plan for the $1.4-million sale to the Land Bank Fast Track Authority of 301 city-owned properties near the site of the proposed New International Trade Crossing. But the City Council essentially withdrew that alternative proposal on Thursday, conceding in a letter from Detroit Corporation Counsel Melvin “Butch” Hollowell that their plan was not currently viable. Although the Michigan Local Emergency Financial Assistance Loan Board — which consists of three state officials appointed by the governor — must approve the bond deals, it is the city, not the state, which is on the hook for paying off the bonds.
