Detroit Bankruptcy Exit Shadowed by Potential Legal Issues

August 28th, 2014

Detroit Institute of Arts, via NYTAs Detroit’s “grand bargain” draws nearer to realization, The New York Times notes that parts of the deal for the city’s exit from bankruptcy may in fact be illegal.  This news comes as a lending company, Art Capital, has offered the city $3 billion in aid using the city’s art collection as collateral, an offer that the city has yet to respond to.  “The museum is owned by the city, and the city is, in fact, in bankruptcy. That asset lawfully should be available to assist in the plan of exit,” said Ian Peck, Art Capital’s chief executive. “But we also believe that this art is a national treasure and should be preserved as such.”Read more at New York Times