Since 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
Tag Archives: Detroit Bankruptcy
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 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
Salon Piece Confirms Primacy of State Law in Detroit Bankruptcy Dispute
Posted in Bankruptcy, Collections, Detroit BankruptcyProfessor Adam J. Levitin of Georgetown has an excellent piece in Salon this week that adds to what I like to call the sober group of discussions about the Detroit Institute of Art collection in the context of the City of Detroit Bankruptcy. From a learned perspective, Professor Levitin echoes some of the themes we’ve… Continue Reading
City of Detroit Hires Christie’s to Appraise Detroit Institute of Arts Collection
Posted in Collections, Detroit Bankruptcy, MuseumsIn connection with the Detroit bankruptcy, auction house Christie’s announced on Monday that it has been hired to “assist and advise on how to realize value for the city while leaving the art in the city’s ownership.” According to the Christie’s press release, the auction house was hired by the City of Detroit itself, which has… Continue Reading
Detroit Institute of Arts Deaccessioning: Municipal Bankruptcy, Existing and Proposed Changes to Michigan Law Affect Debate
Posted in Bankruptcy, Collections, Deaccession, Legislation, MuseumsAn important qualifier to the discussion about deaccessioning and the Detroit Institute of Arts is that although DIA is a subdivision of the bankruptcy debtor (Detroit), that debtor is not any old commercial entity. Rather, Detroit is a municipality, and municipal and state debtors are governed by slightly different rules than private parties. The underlying… Continue Reading
Detroit Institute of Arts and Motor City Bankruptcy: Deaccessioning Fact and Fiction, Hope and Reality
Posted in Collections, DeaccessionThe recent filing by the City of Detroit for bankruptcy—the largest such municipal filing in history—has brought with it an unexpected art law twist. Namely: to what extent can, or should the collection of the Detroit Institute of Arts be used to satisfy the city’s creditors. As one might expect, the differences between what the… Continue Reading
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