CHICAGO — The Detroit City Council Aug. 14 approved a plan to refinance up to $5.5 billion of water and sewer debt as part of the city's bankruptcy exit plan.
The council voted 6-0 in favor of an order from emergency manager Kevyn Orr approving the refunding.
The Detroit Water and Sewerage Department has asked bondholders to tender their bonds as part of the refunding. The city wants to refinance as many tendered bonds as it can — up to $5.2 billion — as well as refund currently callable debt and issue $190 million of new money bond for a capital plan.
The council was required to vote on the deal within 10 days. The Michigan Finance Authority approved the financing on Monday.
Bankruptcy Judge Steven Rhodes still needs to sign off. Pending the court's approval, the city wants to go to market or privately place the bonds as early as Aug. 26.
