April 2 (Bloomberg) — Detroit won court approval to issue $120 million in bonds to pay for emergency vehicles and basic services while it prepares for a court battle with creditors over how to reduce $18 billion in debt.
U.S. Bankruptcy Judge Steven Rhodes approved the borrowing today at a hearing in federal court in Detroit. The city plans to spend $36.2 million of the money on the police department, $28.5 million on the fire department and $35.6 million on blight removal.
Detroit "is not providing sufficient services to meet the basic needs of its citizens," Rhodes said. "This loan will provide the city with the means to begin to make up that deficit. The time to begin is now, if not before now."
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