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.
Toyota has pledged $1 million toward the Detroit Institute of Arts’ goal to raise $100 million to prevent the sale of art in Detroit’s bankruptcy and help city pensioners.
A judge still must hold a trial to determine if Detroit’s overall bankruptcy plan is fair and feasible, but support from retirees is vital.
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.
Thousands of Detroit retirees and city employees must have their ballots on the city’s plan of adjustment in the bankruptcy case turned in this week.
Retirees supporting the plan used the bill-signing ceremony to urge pensioners to vote yes on the deal.
The governor, in Detroit Friday, has signed legislation committing $195 million to help push the city through bankruptcy and protect pensions.