Detroit ordered to give more information on postpetition financing

By Kali Hays

New York, March 25 - A court ordered the City of Detroit to provide additional information regarding its proposed postpetition quality of life financing, according to a Monday order filed with the U.S. Bankruptcy Court for the Eastern District of Michigan.

As previously reported, Detroit obtained preliminary approval in January for proposed debtor-in-possession financing in connection with quality of life financing.

The court claimed that as "several parties have filed objections to the proposed final order, the consideration of this matter would be more efficient for all concerned if the city made certain information available," the order stated.

The court asked Detroit to supply copies of the final documents to be executed with the financing, disclose the proposed loan's interest rate, term, fees, costs and whether it is subject to market flex provisions, and to compare the terms of the current proposed financing with the previous financing that was preliminarily approved by the court, according to the order.

Detroit is also required to provide a schedule of the proposed expenditures and budgets for the financing.

All of the ordered information is to be provided to the court before the scheduled approval hearing on April 2.

Detroit filed bankruptcy on July 18, 2013 under Chapter 9 case number 13-53846.

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