Bankruptcy Updates: The grand bargain, borrowing and paying the bills

Bankruptcy Updates: The grand bargain, borrowing and paying the bills

What’s the status of the grand bargain to provide $865 million from the Detroit Institute of Arts, foundations and the legislature to maintain the museum’s collection? And what are the implications of the terms of the arrangement? The Detroit Free Press’s Mark Stryker explores those questions and more in this piece.

Speaking of the DIA, the city reached a deal last week to borrow $120 million from Barclays to use for services and restructuring efforts. The new loan agreement has the city pledging income tax revenue and “the proceeds of future asset sales, except for Detroit Institute of Arts property,” the Detroit Free Press reports.

State law requires that Detroit pays accident victims, and spokesman Bill Nowling says the city is complying. “Over the last year, the bankrupt-city has paid $7 million in claims to cover, in part, medical bills and lost wages for plaintiffs injured in accidents involving city vehicles,” the Battle Creek Enquirer reports. Where is the money coming from and what would the consequences be for not paying? Read the article here.