Detroit Update
The Detroit Institute of Arts received some surprising - and potentially good - news this week regarding a small but imperiled portion of its collection.
First: in ruling that the city of Detroit could officially enter bankruptcy, federal judge Steven Rhodes observed that "a one-time infusion of cash by selling an asset only delays the inevitable financial failure of the city." It's encouraging for Rhodes to define the embattled collection as the asset it is, and to point out that liquidating it would not be a panacea for the city's fiscal woes by any means.
Second: the artwork in question is worth far less than initial estimates. Rough guesstimates had the targeted works fetching as much as $8 billion, but Christie's preliminary report now says that figure is less than $1 billion. Potentially, this more conservative figure protects the collection because it wouldn't go very far toward retiring the city's $18 billion in debt.
The auction block is still in sight for these masterworks, but it seems they may not be fast-tracked to New York for sale. In any case, the city is out $200,000 for Christie's services in estimating the collection's value.
For more context on Detroit's bankruptcy challenges, see today's Wall Street Journal.
 |
| Van Gogh Self Portrait, at risk in Detroit |
First: in ruling that the city of Detroit could officially enter bankruptcy, federal judge Steven Rhodes observed that "a one-time infusion of cash by selling an asset only delays the inevitable financial failure of the city." It's encouraging for Rhodes to define the embattled collection as the asset it is, and to point out that liquidating it would not be a panacea for the city's fiscal woes by any means.
Second: the artwork in question is worth far less than initial estimates. Rough guesstimates had the targeted works fetching as much as $8 billion, but Christie's preliminary report now says that figure is less than $1 billion. Potentially, this more conservative figure protects the collection because it wouldn't go very far toward retiring the city's $18 billion in debt.
The auction block is still in sight for these masterworks, but it seems they may not be fast-tracked to New York for sale. In any case, the city is out $200,000 for Christie's services in estimating the collection's value.
For more context on Detroit's bankruptcy challenges, see today's Wall Street Journal.
Comments
Post a Comment