CHICAGO – The Detroit City Council Monday unanimously rejected a $350 million debtor-in-possession loan that emergency manager Kevyn Orr wants to use in part to shed the bankrupt city’s interest-rate swaps. The council’s move doesn’t kill the deal, but does delay it.

The council now has seven days to propose an alternative plan that raises the same amount of revenue to the local emergency financial assistance loan board, under the state’s emergency management law.

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