Nine Foundations Pledge $330m to Advance Detroit Grand Bargain to Save DIA and Fill Pension Gap

The Detroit Free Press reports that the mediator has gotten a commitment from nine foundations to pay $330 million as part of a larger deal to protect DIA’s art and help cover the city’s $3.5bn pension shortfall:

U.S. Chief District Judge Gerald Rosen’s statement made clear that the pledges do not by themselves mean that pensions and DIA art are now beyond the reach of creditors. Rather, the commitments are intended and expected to play a part in what Rosen’s statement called “an overall balanced settlement of disputes in the bankruptcy.”

In other words, there is no deal until all the various claims in the broader bankruptcy case have been settled. And the foundations’ support is contingent upon all their money going to support the twin goals of helping fill the unfunded gap in Detroit’s municipal pension obligations and protecting the DIA art collection from possible sale to pay the city’s creditors.

$330 million pledged to save pensions, DIA artwork from Detroit bankruptcy (Detroit Free Press)