$330 million deal could save art in bankrupt Detroit
By Chris Isidore @CNNMoneyJanuary 14, 2014: 9:50 AM ET
A group of leading foundations have offered $330 million to keep art on display in the Detroit Institute of Arts while also helping city retirees who are at risk of having their pension benefits slashed.
It's not clear if the offer will be accepted and it would close only a small fraction of the huge debt that forced Detroit into bankruptcy last year.
But it would at least help inject some cash into the reorganization of the city and eliminate the risk that Detroit's treasured art collection could be sold off to private investors to pay its debts.
The offer was reached after discussions with a federal judge serving as a mediator in the city's bankruptcy case. Since the Detroit Institute of Arts is a unit of city government, some have suggested the art could be sold off to help compensate creditors hurt by the city's bankruptcy filing.
The new offer from the private foundations would provide a way to draw money from the art work without removing it from the museum.
The deal has yet to be approved by either Kevyn Orr, the emergency manager who is effectively running Detroit, or the bankruptcy court that is overseeing the city.