In the first day of the trial over a plan to eliminate more than $7-billion in debt owed by Detroit on Tuesday, a lawyer representing the city argued that unsecured creditors have no rights to be paid with proceeds from the sale of art from the Detroit Institute of Arts, Bloomberg reports.
The bankruptcy trial is expected to last about seven weeks.
Detroit, which filed for bankruptcy last year, has received more financial help from foundations than almost any other large city in the United States, according to data compiled by Bloomberg. From 2003 to 2012, Detroit took in a total of $422-million in foundation grants for community development, or $603 per capita. Only New York, San Francisco, and Chicago have received more in total grants.