A judge has suspended Detroit’s bankruptcy trial until Monday to give the city more time to work out details of a settlement with a major creditor.
The joint filing by the city and bond insurer Syncora Guarantee said that they “have reached an agreement in principle” to settle the company’s $400 million claim in the nation’s largest-ever municipal bankruptcy case.
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.
Slip on that show stopping dress, step into those envy-worthy stilettos, and save the date for an evening of high fashion and fine art. The DIA’s Founders Junior Council and Neiman Marcus have returned with the very popular fashion and art event, Fash Bash.
The pledges bring the Detroit Institute of Arts to almost 80 percent of its grand bargain goal.
A major announcement is expected in a deal that promises millions of dollars to support municipal retiree pensions while protecting city-owned artwork from possible sale as part of Detroit’s bankruptcy.
“This judge wants everybody in Detroit that has an objection to the city’s plan to get out of bankruptcy come to court and prove the case,” WWJ’s Charlie Langton said.
The report will likely play a major role in next month’s Detroit bankruptcy trial.
Of the $26 million, $10 million will come from Ford Motor Co., $6 million from Chrysler Group LLC, $5 million from General Motors Co. and $5 million from the General Motors Foundation.
Some creditors want Detroit to sell the art to help settle the city’s debt.