A recent appraisal commissioned by Art Capital Group claims that the Detroit Institute of Arts (DIA) collection is worth significantly more than previously found by both Christie’s and Artvest Partners, the two firms that had previously evaluated the collection in connection with the city of Detroit’s bankruptcy proceedings. The Art Capital valuation of $8.5 billion is nearly twice the estimate presented by Artvest ($4.6 billion), and ten times the high estimate from Christie’s ($454–867 million).
As the city heads to court next week to defend its proposed bankruptcy plan, the new assessment threatens to unwind the current “grand bargain” agreement, the New York Times reports. That deal, approved by pensioners in a July vote, would spare the museum’s collection from financial involvement in the bankruptcy resolution thanks to funds raised from private and state coffers.
Ian Peck, chief executive officer of Art Capital Group, explained to the Times why financial creditors should have the right to demand that the city use the valuable collection as loan collateral:
The museum is owned by the city, and the city is, in fact, in bankruptcy. That asset lawfully should be available to assist in the plan of exit … But we also believe that this art is a national treasure and should be preserved as such.
This development, beyond occasioning the greatest lede thus far in coverage of the DIA’s bankruptcy saga — “On Wall Street, there is the art of the deal. In Detroit, there is the deal of the art,” from the Times’s Mary Williams Walsh — could see $500 million to $3 billion in debt issued for the payment of creditors. These loans, proposed by Art Capital Group (which famously sought to collect Annie Leibovitz’s negatives when she defaulted on a similar loan with the firm), would be serviced by municipal revenues not related to the museum — but if those falter, the art could be sold.
The Detroit Institute of Arts has not commented on the new appraisal or the proposal from Art Capital Group, though it has, according to the Times, sought to bar the appraiser from appearing as an expert witness in the case.
Join Hyperallergic for an online conversation with cultural organizer and curator La Tanya S. Autry on February 1 at 7pm (EST).
This week, the Tonga eruption as captured from space, Boston gets a big gift of Dutch and Flemish painting, 30 years of New Queer Cinema, an important Marcel Breuer house is demolished, and much more.
At this free online summit, hear from architects Tadao Ando and Lesley Lokko; artist Himali Singh Soin; author Amitav Ghosh; design studio Formafantasma; and more.
Being bowled over by an unknown artist’s first one-person show does not happen often but when it does, it renews your faith that the art world is not just about buzz and hype.
Surrealist images of a Rice Krispies box or Yukon Gold potato explore how data is transformed into the visual language called art.
This immersive video installation utilizes waterscape scenes to speak about concepts such as existence, intimacy, healing, and aquatic ecology.
What is wonderful about the online photography exhibition What Have We Stopped Hiding? is that one is given entrée to the internal monologue of the artists featured in the show.
Self-taught artists were invited to exhibit, and sell, their fuzzy stacks of pancakes and tasseled tapestries.
Curator, educator, and transdisciplinary artist Jova Lynne is coming from MOCAD to lead Temple Contemporary exhibitions and public programs.
Our culture seems obsessed with the artist/model relationship, portrayed in countless movies and narratives as a relationship that is lustful and scandalous.
Creator Art Spiegelman said he was “baffled” by the decision and called the school board’s behavior “Orwellian.”
The winners of this year’s Ocean Art Underwater Photo Contest prove that life is indeed better under the sea.