DETROIT, MI -- Just as Gov. Rick Snyder was announcing a proposal to contribute $350 million in a state funding to help preserve Detroit pensions and the Detroit Institute of Arts, U.S. Bankruptcy Judge Steven Rhodes rejected a request from city creditors seeking a say in the fate of the city's high-priced art.

Rhodes heard arguments Wednesday on whether or not creditors should have a role in appraising the city's art collection and exploring what to do with it.

Detroit last year contracted Christie's Appraisals to assess the value of city-purchased art at the museum. The auction house found 2,800 works to be worth between $454 million and $867 million.

Rhodes said he lacks authority to appoint a committee that would give creditors a say in the matter, according to the Associated Press.

After Detroit filed for bankruptcy in July 2013, Rhodes appointed Chief U.S. District Judge Gerald Rosen to lead mediation of talks between the city and its creditors in forming a plan to slash away at the city's estimated $18 billion debt.

Rosen has since led an effort to raise funds for a deal that would boost the city's pensions funds and prevent the works at the Detroit Institute of Arts from being sold to satisfy debt.

Nonprofit foundations have committed $330 million to the plan and Gov. Rick Snyder is now proposing a state contribution of $350 million that would come from tobacco settlement money.

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