Detroit Reassessing Value of Detroit Institute of Arts Collection

Detroit Reassessing Value of Detroit Institute of Arts Collection

Following demands from creditors, the city of Detroit is assessing the value of the entire collection, the reports.

A group of creditors led by Financial Guaranty Insurance is looking to prove that DIA's collection is worth more than $816 million, the amount the city pledged in a "grand bargain" to swap the art for financial assistance from foundations and the state. According to the News, any change to the price tag will play a role in a July trial in which U.S. Bankruptcy Judge Steven Rhodes will determine whether to approve the city’s debt-cutting plans.

Last year, Christie's Appraisals valued the DIA collection at between $454 million and $867 million, although the firm had limited access to the works. FGI, which faces losses of as much as $1.1 billion in Detroit's bankruptcy, solicited bids from global investors interested in purchasing some or all of the collection or in loaning the city money against the collection and received a number of preliminary bids, including one of $895 million for a hundred and sixteen unnamed works, as well as a $2 billion loan offer using the entire collection of sixty-six thousand pieces as collateral.

However, in a thirty-page filing with the bankruptcy court on Tuesday, museum attorneys argued that most of pieces in the collection, of which only five thousand are on display, were either donated or purchased with monetary gifts that often came with restrictions. The document also noted the museum would act to prevent any sale by the city, adding that the resulting litigation "would likely take years to resolve."

Robert Snell. "." Detroit News 05/28/2014.