The evaluation given this week to the DIA and the city by
"An immediate liquidation of the art collection will result in selling the DIA collection at a fraction of its fair market value," according to the report.
Artwork in the museum has become a key part of
A prior appraisal by Christie's auction house placed the value of 2,800 of those city-owned works at between
Flooding the market with art could decrease the overall value. Christie's and Sotheby's, listed as the two main houses for such an auction, also may refuse to sell the pieces in fear of damaging relationships with the broader museum community, according to the new report.
It also may be difficult to sell some of the museum's most prominent pieces.
"There are several hundred works protected by donor restrictions and many of those are high-value works and those most likely would be eliminated by a sale," DIA Executive Vice President
Some works by Picasso, Van Gogh, Cezanne and Renoir are among those considered "restricted."
"This report verifies what we have said all along. It is very easy to talk about selling art, but it is very difficult to do it," Erickson said.
Other obstacles include clearing title of some pieces in court and legal challenges to the sale of pieces donated to the museum. Litigation could take years to decide.
The city and DIA commissioned the report, which will be used as ammunition in
The city and the DIA received the report Tuesday, said
Thousands of creditors, including banks, bond insurers and city retirees are voting on Orr's restructuring plan for the city's debt and face a Friday deadline to have their ballots received.
Retirees face cuts to their cost-of-living allowances — and for some — their pensions. Part of Orr's plan includes the "grand bargain."
Orr alerted DIA officials in early 2013 that city-owned artwork could be considered assets if
Syncora Capital Assurance and Syncora Guarantee in March filed a motion in bankruptcy court seeking DIA records identifying works of art appraised or valued at more than
But a forced liquidation of the art would hurt retirees, Erickson said.
"When they look at the possibility of liquidating the collection ... they would have to share," she said. "Those proceeds would be divided among all creditors."
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