Will The City Of Detroit Be Tempted By Offer Of $4 Billion With DIA Art As Collateral?
DETROIT (WWJ) – A New York lending firm is trying to throw a curve ball in Detroit’s bankruptcy.
Newsradio 950’s Stephanie Davis reports that a loan offer for billions is now on the table.
Art finance lender, Capital Art Group of New York offered to loan Detroit $4 billion, if the DIA collection is used as collateral for the loan.
The response from Emergency Manager Kevyn Orr’s office was fast and to the point; the art is not for sale nor will it be used for leverage.
Art Capital Group spokesman, Montieth Illingworth says the art would remain in Detroit for the benefit of the community.
“If the Grand Bargain and net present value of the money contributes $400 million and we are prepared to provide $3-$4 billion – the choice should be simple,” said Illingworth.
He further states that the loan could “work alongside the Grand Bargain … there are a lot of ways we could help monetize that assets.”
“And given that a great interest of ours is to keep the art with the city, we think it’s an offer that’s reasonable, affordable and should be considered by the emergency manager,” said Illingworth.
Bill Nowling, with Emergency Manager’s office says, they are 100 percent committed to the Grand Bargain which provides $815 million to shore up pensions and protect art.
In July, the DIA had pledged $100 million to the so-called Grand Bargain. General Motors, Ford and Chrysler already have said they collectively would give $26 million toward the museum’s commitment.
Foundations also have committed about $366 million, while the state will add $195 million.
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