The Michigan Attorney General Bill Schuette is making plans to defend against any attempted bankruptcy liquidation of Detroit Institute of Art collection.
Michigan Attorney General Bill Schuette says he’s prepared to defend the Detroit Institute of Arts collection in federal bankruptcy court. Schuette recently released an opinion that the artwork cannot be sold to satisfy the city’s creditors because it is held in a public trust.
Schuette spokesperson Joy Yearout says he’ll take that position in front of Judge Steven Rhodes if the city puts the collection on the table.
“If and when the issue of how the DIA’s charitable trusts are treated in bankruptcy comes up in court before Judge Rhodes, the attorney general will be prepared to defend the position that they should be protected,” Yearout said.
As the City of Detroit’s Chapter 9 Bankruptcy proceeds it will be interesting to watch which State-wide politicians line up on the pro-Creditor or the pro-City side. Ultimately, the bankruptcy court will make its decisions based on statute and case law. Those opinions will not be politically motivated, but taken from existing bankruptcy law.
