DETROIT Aug 25 A U.S. bankruptcy court judge on
Monday approved Detroit's proposal to repurchase nearly $1.5
billion of existing water and sewer revenue bonds tendered by
investors and to refinance the debt to save money.
The ruling by Judge Steven Rhodes, who is overseeing
Detroit's historic bankruptcy case, clears the way for the sale
of about $1.8 billion of refunding bonds to pay for the tender
and raise $162 million for new projects.
In testimony prior to Rhodes' ruling, Nicolette Bateson,
chief financial officer of Detroit's water and sewerage
department (DWSD), said the bonds would be sold in the municipal
bond market on Tuesday with the deal's closing expected on Sept.
(Reporting By Peter Suciu in Detroit, additional reporting by
Karen Pierog in Chicago; Editing by Chizu Nomiyama)