George Lindemann Journal - "Detroit Museum Raises Nearly $27 Million to Help Stave Off Sale" @wsj by Matt Dolan
Detroit Mayor Mike Duggan speaks at a news conference at the Detroit Institute of Arts Wednesday regarding donations to the Detroit Institute for Arts Getty Images
Some of Detroit's largest corporations pledged nearly $27 million Wednesday in a campaign to save the Detroit Institute of Arts from sale during the city's municipal bankruptcy case.
The group pledged a total of $26.8 million toward the DIA's commitment to raise $100 million as part of a grand bargain designed by federal mediators to help the city emerge from bankruptcy quickly, partially make up shortfalls in municipal pensions and keep what is considered one of the top art museums in the U.S. intact.
Pledging $10 million toward the effort, Roger S. Penske, chairman of the transportation-services company Penske Corp., said in a statement Wednesday that the donations set "the tone for the work yet to be done. I am optimistic about the future of the city and its citizens."
Last month, top U.S. auto makers with headquarters in the Detroit area separately promised to donate $26 million to the effort.
People watch a news conference Wednesday at the Detroit Institute of Arts concerning additional financial pledges by corporations. Getty Images
The museum said the new pledges announced Wednesday bring the DIA to almost 80% of its $100 million fundraising goal. It is part of a broader effort to raise the equivalent of more than $800 million to transfer the collection out of the city's hands and into a nonprofit while using the proceeds to help city pension holders.
The city's municipal bankruptcy case filed a year ago brought an unwelcome spotlight to the city-owned art museum over a possible fire sale. Some of Detroit's creditors said they hoped to convince the city to sell or lease part of the 66,000-piece collection to improve payouts to those owed billions of dollars by Detroit.
Released last week, a city-commissioned report on Detroit's fine-art collection pegged its entire value at $2.8 billion to $4.6 billion. But the report raised doubts about the value of auctioning off Detroit-owned artwork and concluded that liquidating the DIA collection immediately to pay creditors likely would only generate between $850 million and $1.8 billion. Any sale would also likely be complicated by possible litigation by museum officials and donors as well as other market pressures, the report found.
The city filed for Chapter 9 protection in July 2013 with an estimated $18 billion in long-term obligations, making the case the largest such filing. A trial scheduled for next month by a federal bankruptcy judge is likely to determine whether the city's debt-cutting plan, including the effort to save the DIA, is viable.
Write to Matthew Dolan at matthew.dolan@wsj.com