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Judge orders Detroit bankruptcy mediation for Christmas Eve

DETROIT (WKZO) -- A federal judge has ordered representatives of the city of Detroit and its creditors to hold mediation talks on Christmas Eve, if necessary, as they try to renegotiate a 350-million dollar loan to pay off a 2005 financing deal.

In the order, Chief U.S. District Judge Gerald Rosen warned that sanctions, including a default judgement, would be imposed on those who fail to attend the session on December 24th, unless an agreement is reached in the next few days. Rosen, who is leading the mediation discussions, filed the order Thursday, one day after U.S. Bankruptcy Judge Steven Rhodes suspended a trial to determine if Detroit can borrow the money from London-based bank Barclays.