Detroit approves debt rescue plan
4/5/12

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from USA Today

Cash-strapped Detroit approves debt rescue plan

This cash-strapped city reached a deal Wednesday evening to restructure its debt and overhaul operations to avoid having a state-appointed manager take sweeping control of Detroit’s struggling finances.

The City Council voted 5-4 to accept the contentious agreement.

Mayor Dave Bing and Republican Gov. Rick Snyder are set to sign the agreement that allows the city to dodge today’s deadline that would have allowed the governor to appoint an emergency manager.

The debt restructuring could provide the city with $137 million in cash in coming months to avoid payless paydays and missed bond payments. It also means additional concessions from city workers will be needed to balance the budget.

Detroit has a $200 million budget deficit and $13.2 billion in long-term structural debt.