City secures $275 million in exit financing

City secures $275 million in exit financing

If and when Detroit emerges from bankruptcy, the city will have additional financing to help it operate.

Barclays Capital has agreed to back up to $275 million in financial recovery bonds. The notes will be issued by the Michigan Finance Authority.

Detroit officials say they will use the money, in part, for reinvestment and revitalization efforts though they haven’t given details of what those would be. The city could also use the bond proceeds to pay some creditors after the bankruptcy case is finalized in federal court. A previous $120 million loan from Barclay’s will be retired.

The historic Chapter 9 trial is scheduled to begin Tuesday.