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Detroit creditors dealt setback on art plan
Source: Reuters
Detroit creditors dealt setback on art plan
DETROIT Thu May 15, 2014 7:04pm EDT
(Reuters) - A federal judge on Thursday refused to give some of Detroit's creditors unfettered access to art works and related documents in order to pursue a plan to increase the pot of money available for bankrupt Detroit to pay its debts.
Bond insurance companies Financial Guaranty Insurance Co and Syncora Guarantee, as well as European banks and others had asked the U.S. Bankruptcy Court to direct the city and the Detroit Institute of Arts (DIA) to cooperate with their efforts to assess the art work in an effort to develop offers to monetize all or some of it.
Judge Steven Rhodes, who is overseeing Detroit's historic bankruptcy case, declined to force the city to cooperate with the effort, turning down a request to remove art work from the walls of the DIA for appraisal purposes. But he said that DIA was willing to give creditors access to works not on display.
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Under the city's plan to adjust $18 billion of debt and exit the biggest municipal bankruptcy in U.S. history, philanthropic foundations, the DIA and the state of Michigan would come up with $816 million over 20 years to ease pension cuts on Detroit retirees and prevent a sale of art to pay city creditors.
[font size=1]-snip-[/font]
DETROIT Thu May 15, 2014 7:04pm EDT
(Reuters) - A federal judge on Thursday refused to give some of Detroit's creditors unfettered access to art works and related documents in order to pursue a plan to increase the pot of money available for bankrupt Detroit to pay its debts.
Bond insurance companies Financial Guaranty Insurance Co and Syncora Guarantee, as well as European banks and others had asked the U.S. Bankruptcy Court to direct the city and the Detroit Institute of Arts (DIA) to cooperate with their efforts to assess the art work in an effort to develop offers to monetize all or some of it.
Judge Steven Rhodes, who is overseeing Detroit's historic bankruptcy case, declined to force the city to cooperate with the effort, turning down a request to remove art work from the walls of the DIA for appraisal purposes. But he said that DIA was willing to give creditors access to works not on display.
[font size=1]-snip-[/font]
Under the city's plan to adjust $18 billion of debt and exit the biggest municipal bankruptcy in U.S. history, philanthropic foundations, the DIA and the state of Michigan would come up with $816 million over 20 years to ease pension cuts on Detroit retirees and prevent a sale of art to pay city creditors.
[font size=1]-snip-[/font]
Read more: http://www.reuters.com/article/2014/05/15/us-usa-detroit-bankruptcy-idUSBREA4E12K20140515
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