CHICAGO — Michigan officials Friday were negotiating with Bank of America Merrill Lynch to push back the due date on $80 million of debt to buy more time to solve a paralyzing dispute with Detroit’s top attorney.

Winning an extension on the bonds would mean that a $28.5 million state aid payment could go to the cash-strapped city as scheduled instead of being used by the bond trustee to begin to pay off the privately placed debt, state officials said.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.