Sell The Art or Go Broke?
Sell The Art or Go Broke?
by: La’Shunti Williams| October 26, 2013
The city of Detroit has gotten themselves in a sticky situation. They are broke. As of July 18th the city decided to announce that they were filing chapter 9 bankruptcy. This is by far the most talked about bankruptcy that any city in the whole U.S has witness.
Detroit is now facing one of the most difficult decisions deciding what is next to do to help support the city and its money deficits. With no money being generated into Detroit’s economy jobs are at sack. In fact, at least 30 percent of jobs and incomes are vulnerable to be cut.This results in the cities emergency manager Keyvn Orr to step in and take the lead and distinct the problem. Orr has a lot of to decide, and most of all how the city will quickly come up with 18.5 billion dollar to settle the debt, and before the November 13th deadline.
U.S bankruptcy Judge Steven Rhodes will take the next 3 weeks to closely inspect and analyze whether or not the city will possibly come up with enough financial evidence to prove that the city is solvent and will be able to pay off the debt in due time. This is an awaiting process that will work well for the city because this will determine if the city will get the opportunity to postpone their deadline into the Spring of 2014.
With the days flying by and no time to spare Michigan’s attorney targets that the art in the Detroit Institute of Arts (also known as the DIA) is in jeopardy of being sold to fulfill the cities debt. After Orr and his team proposed that the only possible remedy to the over leveraged debt is to sell the art and once people got wind of that they began to protest and nearly 200 people participated. To sum up Orr response he stated that if or if they decided that they are going to sell the paintings a possible solution is going to have to made soon.
Bankruptcy is becoming real systematic because this is not the first bankruptcy the city has faced.First, it was General Motors, one of Detroit biggest money makers. In the year 2008 GM filed bankrupt and yet still it stands and doing well. I do not believe that the city will down spiral no more than they already have. Once the city of Detroit get all the corrupted people that are money hungry and doing everything. but what needs to be done for the city I believe it is a strong possibility that the city will do well.
With all that is going on with the city of Detroit there are a lot of unanswered questions. Nobody knows if the paintings in the DIA are going to be sold,or if the city will be able to provide the 18.5 billion dollars they owe. Over the years this city has experienced a lot of downfalls and money lately is the major issue. In my opinion, Orr and his team will take on the battle and keep going in the process of gathering all of the information they have to prove that the are solvent enough to postpone the deadline until 2014. As long as everyone contribute and work their position and represent it well the city evolve.