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DETROIT, Aug 25 (Reuters) - 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. 4. (Reporting By Peter Suciu in Detroit, additional reporting by Karen Pierog in Chicago; Editing by Chizu Nomiyama)