Detroit bankruptcy creditors ask judge to take steps toward sale of DIA treasures [View all]
Source: Detroit Free Press
A coalition of the largest creditors in Detroit’s bankruptcy is taking the first legal step toward pressuring the city to sell art at the Detroit Institute of Arts.
Three bond insurers, the city’s largest employee union and three European banks filed a motion in federal court this afternoon asking Judge Steven Rhodes to appoint a committee to oversee an independent evaluation of the market value of the multibillion dollar city-owned collection at the DIA.
The motion formally takes the fight over the fate of the DIA into court for the first time. The filing suggests major creditors are unlikely to agree to any restructuring plan if they believe Detroit emergency manager Kevyn Orr is offering a low-ball figure for the value of the art. The move increases the chances that Rhodes will ultimately be forced to decide whether the art can legally be sold.
An executive at New York-based bond insurer Financial Guaranty Insurance Co., which led the drafting of the filing, told the Free Press in an exclusive interview that the city must sell art to satisfy creditors. . .
Read more: http://www.freep.com/article/20131126/NEWS01/311260119/detroit-institute-of-arts-detroit-bankruptcy
This could be the beginning of the end for a truly great museum.
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