Emergency manager: Detroit secures $275 million financing from Barclays to exit bankruptcy

Detroit's state-appointed emergency manager says Barclays PLC will provide $275 million to fund the city's exit from bankruptcy.

Emergency manager Kevyn Orr's office said Thursday the money will be used to pay off a $120 million loan. It will also fund city revitalization efforts and some creditor claims.

Orr's office says up to $200 million of the funding is expected to be tax-exempt.

Detroit is the largest U.S. city to ever enter bankruptcy. The trial to determine if Detroit gets out of bankruptcy is scheduled to start Sept. 2.

The Michigan Finance Authority will issue bonds that Barclays will purchase. The British banking and financial services firm will be the sole underwriter.