Detroit, according to its creditors, is being offered a deal.

The city’s bankruptcy trial will officially begin in mid-August when federal Judge Stephen Rhodes will rule on the Detroit emergency manager Kevyn Orr’s plan of adjustment to restructure the city’s debt — a “grand bargain.” The plan will essentially privatize the Detroit Institute of Arts by spinning it off into a privately managed institution, the savings from which are expected to reduce cuts to monthly retiree pension benefits down to 4.5%.

Responding to the possibility of retirees rejecting the plan out of protest, Orr threatened them by citing the risk of even more severe cuts if the plan does not receive the necessary supermajority approval by retirees and city workers who have until July 11 to cast their ballot. The heads of the city’s largest union AFSCME Local 25, as well as the police and firefighter associations and the local NAACP, have already urged retirees to accept the cuts and vote in favor of the plan.