U.S. Bankruptcy Judge Seven Rhodes gave the OK Friday for a $210 million financing plan meant to fix Detroit's street lights.
Detroit's Public Lighting Authority plans to repair and replace the thousands of non-function streetlights around the city.
The proposed lender of the short-term loan, Citigroup, requested an official order from Rhodes as assurance that the $12.5 million-per-year in utility taxes wouldn't be redirected to creditors, pensioners or other parties in a bankruptcy reorganization.
The approval is expected to give banks and the credit markets the confidence to lend money to Detroit’s new Public Lighting Authority, which plans to use $12.5 million per year in revenue from city utility taxes to back a $60 million short-term loan and $150 million bond issue.
Money from the $150 million bond issue will go to repaying the loan.
