Objections raise new concerns over DIA collection

(WXYZ) - Is the DIA artwork safe?

There's a new threat and it's from Syncora Guarantee, a bond insurer and creditor in the city's bankruptcy case.

The bond insurer's filing requests bankruptcy judge Steven Rhodes delay the city's bankruptcy trial from June to September.

In the court brief, bond insurer Syncora Guarantee, an unsecured creditor in the bankruptcy, objects to the fast-track established by Emergency Manager Kevyn Orr, and Judge Rhodes.

Syncora wants more time for the value of the artwork at the DIA to be detailed and calls it an "odd decision" to value just 5-percent of the collection.

7 Action News bankruptcy expert, attorney Stuart Gold, thinks Syncora's strategy is for a bigger payout and a sell-off of the artwork.

"They believe that the DIA is worth more perhaps. And that they are entitled to more money."

Christie's Auction Hose valued roughly 1,700 pieces at between $454 and $867 million.

Emergency manager Kevyn Orr released a statement to 7 Action News Friday night, saying Syncora's filing is nothing more than another delay tactic to drag out the bankruptcy and to keep the city from investing in basic services the 700,000 residents need and deserve.

Syncora has filed two motions this week to delay the trial and is pushing for a higher valuation of the DIA, but Gold thinks a favorable ruling for Syncora from Judge Rhodes is a long shot.

"I don't see him granting any adjournments."

 

Syncora motion

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