The Detroit Institute of Art has reached its goal of raising $100 million over 20 years to help fund the city’s bankruptcy restructuring plan.
“People will long remember that when Detroit arrived at this troubling hour…”
Most of donation will be used for the DIA’s $100 million commitment to the so-called grand bargain. The rest will go toward reinstalling the museum’s Japanese collection in a new gallery.
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.