Detroit’s Art Saved as Bankruptcy Deal Emerges

The last holdout in the Detroit bankruptcy has asked for the trial to be suspended so they can put the finishing touches on a deal. The deal finalizes the process that used the city-owned art as a bargaining chip:

“We are proceeding with a firm and active faith that we will have a deal to present to the court or announce to the court on Thursday,” said Mr. Cullen, a partner in the firm of Jones Day.

A lawyer for Financial Guaranty, Alfredo R. Pérez, also asked Judge Rhodes to suspend the trial for two more days “to see if we can have a consensual deal by that time.”

Details on the terms of any settlement were not available. Financial Guaranty had been pushing for Detroit to borrow money against its art collection, but the city plans to finance its exit from bankruptcy with a loan of up to $275 million from Barclays Capital, secured by city tax revenue.

Deal Is Said to Be Close in Detroit’s Bankruptcy  (NYTimes.com)