Judge orders Detroit to renegotiate bank debt deal

DETROIT (AP) -- A federal bankruptcy judge has told state-appointed Detroit emergency manager Kevyn Orr and his team to renegotiate a better debt settlement with two banks. Judge Steven Rhodes suspended a hearing Wednesday on whether the deal would be allowed. The deal involves a $350 million loan from Barclays. About $230 million would be used to fully pay off a complicated $1.4 billion deal with the banks to cover city pension debt. The rest would be used on city services. Lawyers for Detroit said they'll renegotiate Thursday with the banks and inform Rhodes today about their progress. Detroit retirees and pensioners oppose the deal with the two banks. On Dec. 3, Rhodes approved Orr's petition to take Detroit into bankruptcy. Orr says Detroit has at least $18 billion in debt. Published: Fri, Dec 20, 2013