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Detroit City Council rejects Emergency Manager's plan

DETROIT (WKZO) -- The Detroit City Council has voted to reject a 350-million dollar loan for bankruptcy financing by Emergency Manager Kevyn Orr.

Orr secured the loan earlier this month from Barclays to pay off a pension-related debt and finance the improvement of government services while Detroit is in bankruptcy.  The City Council unanimously rejected Orr’s proposal and now has seven days to propose an alternative to the state’s local emergency loan board.

It appears as though the council will not offer an alternative, but instead let bankruptcy court proceedings play out, giving U.S. Bankruptcy Judge Steven Rhodes the ultimate say on the deal.