Law
4:06 pm
Fri June 14, 2013

Michigan AG says state law protects DIA assets from bankruptcy sale

Michigan Attorney General Bill Schuette has released a legal opinion that says the collection held by the Detroit Institute of Arts cannot be sold if the city goes into bankruptcy.

The opinion was issued in response to a request by Senate Majority Leader Randy Richardville.

The opinion says the assets owned by the Detroit Institute of Art are held in a public trust for the people of Michigan, and cannot be used to pay off the city's debts. Schuette says in the opinion, "In Michigan, we not only appreciate our cultural treasures, we guard them zealously."

Detroit has $15.6 billion dollars in long-term liabilities, and emergency manager Kevyn Orr will need to take some drastic measures to pay those debts.

Kevyn Orr -- who is a bankruptcy attorney and turnaround expert -- is in the middle of negotiating a debt reduction plan with the city's creditors. He has said there are no guarantees the DIA's assets would be off the table in the event of a bankruptcy.