junk bonds

Detroit Mayor Dave Bing’s proposal to sell $250 million in debt reduction bonds cleared its first major hurdle then the state House Appropriations Committee approved the sale by a 19-8 vote on Wednesday. The bonds be backed by future state revenue sharing funds and future property tax receipts, both of which have been dropping steadily [...]

Mayor Dave Bing is going to ask the Detroit City Council to approve a debt reduction plan that includes selling $250 million worth of bonds to pay down some of the city’s $300 million in already existing debt. The Detroit Free Press reports:

The Detroit City Council voted on Tuesday to approve the sale of $94 million in bonds backed by future property tax receipts in order to keep the city running. The vote was 6-1, with only councilwoman JoAnn Watson voting against the proposal.