The Detroit Institute of Arts is prepared to sue to prevent the sale of its collection if Detroit's plan for exiting bankruptcy is not approved, the museum's chief operating officer told the bankruptcy court yesterday, Reuters reported. When Detroit filed for the largest-ever U.S. municipal bankruptcy 14 months ago, the museum began preparing for possible litigation to keep its art works from being sold to pay city creditors, museum COO Annmarie Erickson told the court. Some city creditors have contended that the art is a city asset that can be sold or monetized to enhance payouts to creditors. The Detroit Institute of Arts and Michigan's attorney general have countered that the collection cannot be legally sold to satisfy the city's debts. In January, court mediators brokered a deal known as the "grand bargain" which led to pledges from foundations, the art museum and the state of Michigan to raise more than $800 million over 20 years to ease cuts to city pensions. In return, the museum's assets would be held by a perpetual charitable trust.
