Judge Rhodes has approved the plan of adjustment for Detroit to emerge from bankruptcy. More analysis to come, but most critically for our purposes it affirms the Grand Bargain and the security of the collection of the Detroit Institute of Arts. We’ll post the full opinion when it’s published, but notably, Nathan Bomey at the… Continue Reading
Category Archives: Detroit Bankruptcy
Subscribe to Detroit Bankruptcy RSS FeedREMINDER—Art Law Day Next Friday, November 7, 2014
Posted in Antiquities, Appraisal, Authentication, Copyright, Detroit Bankruptcy, Events, Resale Royalties, RestitutionArt Law Day at the Appraisers Association of America’s annual conference is next Friday, November 7, 2014 at NYU’s Kimmel Center. Sullivan & Worcester LLP will be sponsoring the event as a Friend of Art Law Day this year, about which we are very excited. The keynote address has been changed to focus on the… Continue Reading
Rep. Jerrold Nadler, American Royalties, Too Act Sponsor, Added to Speakers at Appraisers Association of America Art Law Day on November 7, 2014 at NYU
Posted in Appraisal, Authentication, Detroit Bankruptcy, Events, Legislation, Resale Royalties, RestitutionArt Law Day at the Appraisers Association of America’s annual conference is now less than a month away. Held at the NYU Kimmel Center, this year’s event will be held on Friday November 7, 2014. Sullivan & Worcester LLP is excited to be a Friend of Art Law Day this year. The scheduled that was… Continue Reading
Detroit Emergency Manager Kevyn Orr Testifies About Impact of Selling Detroit Institute Art Collection
Posted in Bankruptcy, Detroit Bankruptcy, Litigation, MuseumsThroughout the Detroit bankruptcy and the attendant speculation about what role, if any, the collection at the Detroit Institute of Arts that is owned by the city should play, a parallel parlor game has been to try to guess what Emergency Manager Kevyn Orr’s endgame and motivation really was. He has dropped hints about the… Continue Reading
Remaining Creditor Sharpens Knives Over Detroit Institute of Arts Collection Value
Posted in Appraisal, Bankruptcy, Detroit Bankruptcy, Museums, UncategorizedAfter Syncora Capital settled its objections to the Detroit bankruptcy plan of adjustment, it looked like the battle over the Detroit Institute of Arts collection would subside. Not so fast, it turns out. A major contest looms next week with a remaining creditor, Financial Guaranty Insurance Corporation, over the valuation of the collection. Just to… Continue Reading
Syncora Reaches Deal with Detroit and Apologizes to Mediators, Grand Bargain to Protect Detroit Institute of Arts Likely Secure
Posted in Bankruptcy, Detroit BankruptcyAfter months of bitter fighting over the so-called Grand Bargain to infuse the Detroit bankruptcy with hundreds of millions of dollars from (among others) the State of Michigan, the Community Foundation for Southeast Michigan, the Kresge Foundation, the Ford Foundation, the John S. and James L. Knight Foundation, the William Davidson Foundation, the Fred A…. Continue Reading
The Art Law Report Turns Three: the Training Wheels are Off
Posted in Copyright, Cy Pres, Deaccession, Detroit Bankruptcy, Fair Use, Gurlitt Collection, RestitutionAs I have before, I wanted to mark the third anniversary of this blog since we posted three articles on September 15, 2011. In the last year, you (the reader) have helped the Report grow beyond our most optimistic hopes. We have done our best to cover significant events like the Gurlitt saga and restitution issues, the… Continue Reading
All Sides Show Their Cards on Detroit Institute of Arts Collection as Bankruptcy Trial Begins
Posted in Deaccession, Detroit BankruptcyOpening statements concluded in the Detroit Bankruptcy trial yesterday, and as expected, the role of the art at the Detroit Institute of Arts played a central role. Although opening statements constitute nothing of evidentiary value, they obviously show the road map that the various sides intend to follow. Thanks to courtroom reporting, we have a… Continue Reading
Sullivan & Worcester LLP Pleased To Become a Friend of the Appraisers Association of America Art Law Day on November 7, 2014
Posted in Authentication, Detroit Bankruptcy, Events, RestitutionI’m pleased to announce that Sullivan & Worcester LLP has signed on as a Friend of Art Law Day at the annual conference of the Appraisers Association of America. The schedule has recently been released and registration is now available. Held once against at New York University Kimmel Center, this year’s event will be held on Friday… Continue Reading
Creditors Strike Back With Report Valuing Detroit Institute of Arts Collection at $8.5 Billion
Posted in Detroit BankruptcyWeeks after the city of Detroit released its valuation expert report on the value of the full collection of the Detroit Institute of Arts by Artvest Partners, creditors opposed to the city’s plan of adjustment and the “Grand Bargain” within it have released their own appraisal. Not surprisingly, it asserts a significantly higher value of… Continue Reading
City Releases Updated Appraisal of Full Detroit Institute of Arts Collection, Tactical Questions Abound
Posted in Detroit BankruptcyA report by an expert witness designated by the City of Detroit for the upcoming bankruptcy trial has been released concerning the value of the full collection of the Detroit Institute of Arts. The report puts the full collection value at $2.7 to $4.6 billion, but estimates that the price it would fetch if the… Continue Reading
Detroit Institute of Arts Makes Case for Its Art as a Public Trust that City Could Not Sell Even if it Wanted To
Posted in Deaccession, Detroit BankruptcyAfter Judge Rhodes denied (as predicted) the expansive relief requested by creditors in the Detroit bankruptcy to perform a top-to-bottom appraisal of the collection of the Detroit Institute of Arts, attention has focused on those creditors’ objection to the “grand bargain” within the overall plan of adjustment. The creditors (and some academics) have argued that… Continue Reading
Detroit Institute of Arts Grand Bargain Not Done Yet, Creditors Claim to Have Purchaser Willing to Pay Nearly $2 Billion for Entire Collection
Posted in Deaccession, Detroit BankruptcySince reports last month that a grand bargain had been struck to provide an infusion of cash to the Detroit bankruptcy in exchange for conveying the artwork at the Detroit Institute of Arts back to the museum itself, it has been largely accepted that the deal would succeed. The deal would contribute $366 million from… Continue Reading
Bankruptcy Court Denies Creditors’ Motion to Reappraise Detroit Institute of Arts Collection
Posted in Detroit BankruptcyAs we predicted when it was filed, Judge Rhodes of the U.S. Bankruptcy Court for the Eastern District of Michigan denied today several creditors’ motion to appoint an independent commission to appraise the collection of the Detroit Institute of Arts (owned by the city of Detroit) as part of the city’s ongoing bankruptcy. The creditors’… Continue Reading
Foundations Pledge $330 Million to Keep Detroit Institute of Arts Collection Safe from Liquidation
Posted in Detroit BankruptcyDetroit Emergency Manager Kevyn Orr’s plan to monetize the collection of the Detroit Institute of Arts, whether by sale or otherwise, took a large step towards realization today when at least nine local and national foundations pledged up to $330 million to Detroit to keep the collection of the Detroit Institute of Arts safe from… Continue Reading
Hearing Set On Creditors’ Motion to Force an Appraisal Committee for the Detroit Institute of Arts Collection
Posted in Appraisal, Detroit BankruptcyFollowing on yesterday’s release of the full report and recommendations by Christie’s with regard to the collection of the Detroit Institute of Arts, the Bankruptcy Court has set a hearing on the creditors’ earlier motion to force appraisal of additional works of art. The creditors’ motion will be heard January 22, 2014 at 10:00 a.m.
Full Christie’s Report Issued on Detroit Institute of Arts Collection, City Holding the Cards to Push for Negotiated Grand Bargain
Posted in Appraisal, Detroit BankruptcyAfter Judge Rhodes of the Bankruptcy Court for the Eastern District of Michigan ruled on December 3, 2013 that the city of Detroit is eligible for Chapter 9 Bankruptcy protection, the city immediately divulged that the report commissioned by the city from Christie’s to appraise the Detroit Institute of Arts (DIA) collection was nearly finished. … Continue Reading
Post Eligibility Ruling, Kevyn Orr Reiterates Expectation That DIA will Contribute Revenue to City’s Financial Plan
Posted in Detroit BankruptcyJust after the Bankruptcy Court held that Detroit is indeed eligible for Chapter 9 bankruptcy, Emergency Manager Kevyn Orr reiterated that he expects the Detroit Institute of Arts to contribute financially to the city’s plan to emerge from insolvency. Said Orr, “We’d like to find a way to monetize the DIA.” Adding complexity to an… Continue Reading
Detroit Institute of Arts Responds Swiftly to Detroit Bankruptcy Eligibility Ruling
Posted in Detroit BankruptcyThe Detroit Institute of Arts was ready: the museum released a statement immediately after the Bankruptcy Court’s ruling today that Detroit is eligible for Chapter 9 Bankruptcy (in which specific reference to the DIA collection was made). As we expected, DIA took aim at last week’s creditors, and make clear its vehement objection to the capitalization… Continue Reading
Detroit Bankruptcy Will Proceed, Judge’s Comments about Detroit Institute of Arts Could Affect Involvement or Sale of Artwork
Posted in Detroit BankruptcyThe Hon. Steven W. Rhodes of the U.S. District Court for the Eastern District of Michigan has ruled that Detroit may proceed with its Chapter 9 bankruptcy. Judge Rhodes explained his ruling for over an hour from the bench, finding Chapter 9 itself to be constitutional, and addressing other challenges including the requirements of Michigan… Continue Reading
Detroit Creditors Press Bankruptcy Court for Action on Sale of Detroit Institute of Arts Collection, Motion Likely Premature and Unfounded
Posted in Detroit BankruptcyMajor creditors of the city of Detroit filed a request in the bankruptcy proceeding to hasten the process of evaluating the value of the collection of the Detroit Institute of Arts. The motion raises a few questions, but fundamentally it is off-base: in a municipal bankruptcy the creditors are never going to be able to force… Continue Reading
Last Call: “Selling the Museum’s Collection: Is Deaccessioning Ever Appropriate?” on Monday
Posted in Deaccession, Detroit Bankruptcy, EventsA last reminder that on Monday, there will be a panel discusion at Columbia Law School entited “Selling the Museum’s Collection: Is Deaccessioning Ever Appropriate?“ From the event description: “The Kernochan Center for Law, Media and the Arts is proud to welcome Roberta Smith, New York Times art critic, and Nicholas O’Donnell, author of “The… Continue Reading
Detroit Bankruptcy Eligibility Trial Begins, Art Collection Could Hang in the Balance
Posted in Detroit BankruptcyTrial begins today in the U.S. Bankruptcy Court in Detroit over whether the city of Detroit is even eligible for the Chapter 9 bankrupcty protection it sought earlier this year. The major point of contention is whether Detroit may, under the Michigan constitution, seek bankrupcty in a way that would reduce pension payments (as it… Continue Reading
Detroit Emergency Manager Expects DIA Collection to Bring Revenue
Posted in Bankruptcy, Detroit BankruptcyAs the controversy around the possible sale of the Detroit Institute of Arts’ collection continues to swirl, Emergency Manager Kevyn Orr has given some of his most pointed comments to date about his expectations. To recap, the DIA collection is owned by the city of Detroit, now in bankruptcy. The question has thus arisen about… Continue Reading
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