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Syncora Reaches Deal with Detroit and Apologizes to Mediators, Grand Bargain to Protect Detroit Institute of Arts Likely Secure

Posted by Nicholas O'Donnell on September 15, 2014 at 6:53 AM

After months of bitter fighting over the so-called Grand Bargain to infuse the Detroit bankruptcy with hundreds of millions of dollars from (among others) the State of Michigan, the Community Foundation for Southeast Michigan, the Kresge Foundation, the Ford Foundation, the John S. and James L. Knight Foundation, the William Davidson Foundation, the Fred A. and Barbara M. Erb Family Foundation, the Hudson-Webber Foundation, the McGregor Fund, and the Charles Stewart Mott Foundation to keep the collection of the Detroit Institute of Arts out of discussion for any sale or use as collateral, the Grand Bargain’s fiercest opponent has announced an agreement with the city and the withdrawal of its opposition to the plan of adjustment. This does not completely put an end to discussion about the role of the DIA collection, but for all intents and purposes it will likely be the last of any proposal to collateralize or sell the artwork. The episode also provides a lesson to practitioners about the cost of overzealousness.

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Topics: the Ford Foundation, Chapter 9, the Fred A. and Barbara M. Erb Family Foundation, Syncora Capital, the Hudson-Webber Foundation, the John S. and James L. Knight Foundation, the William Davidson Foundation, Financial Guaranty Insurance Co., Judge Rhodes, Christie's, valuation, Appraisal, Detroit, the McGregor Fund, Eugene Driker, Detroit Institute of Arts, Bankruptcy, Gerald Rosen, the Kresge Foundation, the Charles Stewart Mott Foundation, eligibility, Detroit Bankruptcy, the Community Foundation for Southeast Michigan, grand bargain

Detroit Institute of Arts Makes Case for Its Art as a Public Trust that City Could Not Sell Even if it Wanted To

Posted by Nicholas O'Donnell on May 29, 2014 at 12:31 PM

After Judge Rhodes denied (as predicted) the expansive relief requested by creditors in the Detroit bankruptcy to perform a top-to-bottom appraisal of the collection of the Detroit Institute of Arts, attention has focused on those creditors’ objection to the “grand bargain” within the overall plan of adjustment. The creditors (and some academics) have argued that the grand bargain is a “preferential transfer,” that it puts some creditors (pension holders) in a better position than other creditors (lenders, in particular) in violation of bankruptcy principles.

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Topics: Old Master, Deaccession, the Ford Foundation, Mark Stryker, Chapter 9, the Fred A. and Barbara M. Erb Family Foundation, the Hudson-Webber Foundation, 11 U.S.C. § 904, Impressionism, Amedeo Modigliani, Michelangelo, the John S. and James L. Knight Foundation, the William Davidson Foundation, Judge Rhodes, Christie's, valuation, Scheme for the Decoration of the Ceiling of the Si, Appraisal, Modernist Art, Detroit, the McGregor Fund, Eugene Driker, Detroit Institute of Arts, Bankruptcy, Gerald Rosen, the Kresge Foundation, the Charles Stewart Mott Foundation, Detroit Emergency Manager, Kevyn Orr, Detroit Free Press, eligibility, Detroit Bankruptcy, the Community Foundation for Southeast Michigan

Foundations Pledge $330 Million to Keep Detroit Institute of Arts Collection Safe from Liquidation

Posted by Nicholas O'Donnell on January 13, 2014 at 8:40 AM

Detroit Emergency Manager Kevyn Orr’s plan to monetize the collection of the Detroit Institute of Arts, whether by sale or otherwise, took a large step towards realization today when at least nine local and national foundations pledged up to $330 million to Detroit to keep the collection of the Detroit Institute of Arts safe from sale, loan, or other encumbrance, and also to shore up pension funds Following the release of Christie’s appraisal report, and weeks of rumors that a “grand bargain” was in the works to raise money in exchange for keeping DIA’s art collection out of any plan of adjustment for the city’s bankruptcy, the Detroit Free Press reports today that federal mediator and U.S. District Court Judge Gerald Rosen released a statement outlining the pledge. The foundations identified are the Community Foundation for Southeast Michigan, the Kresge Foundation, the Ford Foundation, the John S. and James L. Knight Foundation, the William Davidson Foundation, the Fred A. and Barbara M. Erb Family Foundation, the Hudson-Webber Foundation, the McGregor Fund and the Charles Stewart Mott Foundation.

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Topics: Old Master, the Ford Foundation, Mark Stryker, Chapter 9, the Fred A. and Barbara M. Erb Family Foundation, the Hudson-Webber Foundation, 11 U.S.C. § 904, Impressionism, Amedeo Modigliani, Michelangelo, the John S. and James L. Knight Foundation, the William Davidson Foundation, Judge Rhodes, Christie's, valuation, Scheme for the Decoration of the Ceiling of the Si, Appraisal, Modernist Art, Detroit, the McGregor Fund, Eugene Driker, Detroit Institute of Arts, Bankruptcy, Gerald Rosen, the Kresge Foundation, the Charles Stewart Mott Foundation, Detroit Emergency Manager, Kevyn Orr, Detroit Free Press, eligibility, Detroit Bankruptcy, the Community Foundation for Southeast Michigan

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About the Blog


The Art Law Report provides timely updates and commentary on legal issues in the museum and visual arts communities. It is authored by Nicholas M. O'Donnell, partner in our Art & Museum Law Practice.

The material on this site is for general information only and is not legal advice. No liability is accepted for any loss or damage which may result from reliance on it. Always consult a qualified lawyer about a specific legal problem.

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