A state board involved in Detroit's financial reorganization has approved the city's sale of $120 million in bonds.
The Local Emergency Financial Assistance Loan Board made the decision Tuesday at a meeting in Lansing. It requires federal bankruptcy court approval as well.
The Detroit Free Press has reported that Detroit emergency manager Kevyn Or was in talks with Barclays LLC to borrow $120 million to speed the restructuring.
Orr is leading the city of 700,000 through a bankruptcy reorganization as a way to pare down its estimated $18 billion debt.
Governor Rick Snyder says the borrowing will aid Detroit's restructuring and "help combat blight, improve public safety, and enhance the quality of services Detroit residents expect and deserve."