The City of Detroit forcefully defended its bankruptcy restructuring plan in a court filing over the Memorial Day holiday, arguing that pensioners deserve better treatment than unsecured financial creditors and that a plan to spin off the city-owned Detroit Institute of Arts is legal, the Detroit Free Press reported today. With more than 600 official objections to Detroit’s plan of adjustment so far, the city’s 256-page response offers a snapshot of an epic summer trial over whether the plan is fair, legal and feasible. Separately, the DIA moved to protect itself in court, arguing in its own filing that its artwork is legally protected from the auction block and threatened a court battle if the city pursues a sale. It said that it will support the city’s plan to allow the transfer of ownership of the DIA to an independent nonprofit. Bankruptcy Judge Steven Rhodes will determine whether the restructuring plan should be implemented in a 17-day trial currently scheduled to start July 24.
