Former banker Jonathan Weal is facing prison time after allegedly withholding information on his art collection during bankruptcy proceedings, a collection that included a work recently authenticated as a J.M.W. Turner seascape. “Mr Weal was required by law to declare all property that he owns but failed to do so,” says prosecutor Klentiana Mahmutaj. (more…)
The Detroit Bankruptcy hearings begin this week, and while some alarmists wring their hands over the fate of the Detroit Institute of Art’s collection, the Art Market Monitor notes a series of indications that the museum collection will likely not find itself on the auction block. Citing a New York Times article, the site notes the “scorched earth” approach taken by debt holders Syncora, and the chances that it may only alienate the courts in attempts to collect whatever it can on the final rulings. (more…)
The country of Portugal will ultimately sell its collection of 85 Joan Miró works, after a national court overturned the ruling banning their sale. With over $110 billion in debt, the European nation will seek to alleviate its financial burden by selling the series of works originally in the Banco Português de Negócios collection. (more…)
As 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.” (more…)
As the final details of Detroit’s bankruptcy plan begin to take shape, bond insurer Syncora (the same group that slapped the Detroit Institute of Arts with a massive subpoena months ago) has filed a formal objection over the management of out-of-court settlements in the city’s exit from bankruptcy. The complaint, filed this week, stated that chief mediator Gerald Rosen made several statements that he felt it was his duty to get the best possible deal for Detroit’s pensioners, rather than maintain impartial judgements in the settlements. (more…)
Detroit retirees have passed a vote resolving to allow the Detroit Institute of Arts to spin-off as its own institution, and to accept pension cuts, reflecting what many believe to be the popular opinion towards the city’s art collection and its ability to recover. “The voting shows strong support for the city’s plan to adjust its debts and for the investment necessary to provide essential services and put Detroit on secure financial footing,” said Detroit emergency manager Kevyn Orr.
The final valuation of the Detroit Institute of Arts has topped $4.6 billion, the Wall Street Journal reports, a figure that could create notable complications for the city in bankruptcy court. The report also notes that the immediate sales of these works does not appear to be a feasible method of raising funds. “The report makes it abundantly clear that selling art to settle debt will not generate the kind of revenue the City’s creditors claim it will,” says Bill Nowling, spokesman for Detroit Emergency Manager Kevyn Orr. (more…)
A coalition of Detroit Automakers (GM, Ford, Chrysler) has announced plans to donate about $10 million each over the next decades in order to aid the city’s bankruptcy exit while protecting its art collection at Detroit Institute of Arts. The museum will also be soliciting donations from other corporations. “For this to work, the Legislature has to be in and part of it,” says an unnamed CEO considering a donation. “Business groups are encouraging the Legislature to make it happen.” (more…)
The City of Detroit is nearing a pension cuts deal which may allow the Detroit Institute of Arts to spin off from city ownership, provided state funding, foundation contributions and Detroit Institute of Arts fund-raising would provide $816 million to reduce potential cuts to city pensions. The city is sell engaged with talks with representatives from the city’s largest pension funds. (more…)
Bond insurer Syncora, one of the creditors in Detroit’s bankruptcy case, has filed a massive subpoena against the Detroit Intitute of Arts, calling for a selection of documents including ownership records, documents regarding donations, and tax records, among other records. The move is the latest in an increasingly fraught debate over whether credtiors will push DIA to sell off its works for Detroit’s debts. (more…)
In what may be the final piece of the puzzle to rescue the Detroit Institute of Arts collection from a potential auction by the city, the museum has made the commitment to raise $100 million in additional funds over the next 20 years. The donation would secure city pension funds, and in turn, hold the city to an agreement to transfer the legal title of ownership to the museum, effectively preserving it from any future sale. “Clearly this is going to be a challenge,” COO Annmarie Erickson said. “It’s an enormous amount of money, but we’ve proven over and over again that we are good at raising money. We’ll have to balance this effort with our need to raise endowment dollars and operational funding. But given that this will help move the bankruptcy along quickly, that it will help the pensioners (and) ensure that the DIA collection is safeguarded for the public, we have compelling arguments to take to donors.” (more…)
A coalition of 9 national and local foundations has agreed to pay $330 million to help stabilize the city of Detroit’s pension plans, taking a major step in preventing the sale of the Detroit Institute of Arts‘ collection. Even so, the city has several hurdles to get past before the deal to get the Institute’s collection off the table. “There are many things that could still go wrong,” says Alberto Ibargüen, president of the John S. and James L. Knight Foundation. “The devil is always in the details in these things.” (more…)
The long-disputed valuation of the Detroit Institute of Arts’ collection has finally been completed, with a final valuation that falls somewhere between $454 million to $867 million. This valuation factors in a Van Gogh self-portrait valued at $150 million on its own, as well as a Bruegel the Elder painting that could sell for anywhere between $100 and $200 million. (more…)
A coalition of the largest creditors in Detroit’s current bankruptcy has made the initial movements in court to push Detroit to sell works from the collection of the Detroit Institute of Arts. The motion formally brings the dispute into court, which has been hinted at for several months. “We recognize that this is a very sensitive issue,” says Derek Donnelly, managing director of Financial Guaranty Insurance Co.. “Whatever process we undertake here, we would hope would create a win-win situation — that ultimately there will be a viable DIA that will survive this process and possibly even thrive. But at the same time there needs to be a construct that addresses the fact that the DIA, or art, is not an essential asset and especially not one that is essential to the delivery of services in the city.” (more…)
Detroit’s bankruptcy filing this week has once again placed the future of the Detroit Institute of Arts collection in question, with creditors sizing up the museum’s collection of works by Caravaggio, van Gogh and more. Despite arguments for the preservation of the collection, emergency manager Kevyn D. Orr’s spokesman, Bill Nowling claims: “We cannot negotiate in good faith with our creditors by taking assets off the table. And all of our creditors have asked about the worth of the D.I.A. And we’ve told them that they’re welcome to find out.” (more…)
