August 6, 2013

Christie's to appraise Detroit's artwork

Creditors ask for a valuation of the city's assets as a judge weighs a bankruptcy request.

The Associated Press

DETROIT — International auction house Christie's will appraise some pieces in the Detroit Institute of Arts collection as a federal judge considers a state-appointed emergency manager's request to push the city into the largest municipal bankruptcy in U.S. history.

click image to enlarge

Docent Lea Schelke points out details in “Portrait of Postman Roulin” by Vincent Van Gogh recently at the Detroit Institute of Arts.

The Associated Press

Christie's will assist and advise on valuing the artwork while leaving the pieces in the city's ownership, the New York-based firm said Monday on its website.

The DIA, considered one of the top art museums in the country, is home to hundreds of paintings and sculptures by Van Gogh, Bruegel the Elder, Renoir and other masters. The city purchased many of the pieces in the collection years ago during more prosperous times.

That means they could be considered assets in a bankruptcy, a possibility that emergency manager Kevyn Orr warned DIA officials about earlier this year. Orr filed for bankruptcy on July 18.

"We understand that a valuation of all the city's assets (extending well beyond the art) is one of many steps that will be necessary for the legal system to reach a conclusion about the best long-term solution for the citizens of Detroit," the auction house said.

"We want to continue to focus our efforts on being a positive force in both the interests of the city of Detroit and its arts community, including working with our fellow arts professionals at the DIA and with the city to find alternatives to selling that would still provide the city with needed revenue."

Orr has said the city is insolvent and can't pay its bills. Detroit has a budget deficit of about $380 million. Long-term debt could be as much as $20 billion.

U.S. Bankruptcy Judge Steven Rhodes has to determine whether Detroit is eligible for bankruptcy.

Creditors have asked the city to put a value on its assets, Orr said Monday. Placing dollar figures on the pieces does not "portend a sale of any asset," he added.

"There has never been, nor is there now, any plan to sell art," Orr said in a news release. "This valuation, as well as the valuation of other city assets is a step the city must take to reach resolutions with its creditors and secure a viable, strong future for Detroit and its residents."

The DIA told The Associated Press in a statement Monday afternoon that it would cooperate in Christie's appraisal process, but pointed to a formal opinion by Michigan Attorney General Bill Schuette that said city-owned DIA pieces can't be sold in a bankruptcy proceeding. Schuette said in June that the artwork is held in a charitable trust for Michigan residents.

 

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