Michael Casey of the Wall Street Journal just published a very short by very interesting article on Argentina, and the effects of defaulted bonds and fine art exhibitions. When Argentina defaulted on bonds in 2001 and failed to reach a settlement with bondholders, those bond holders now may have a claim against Argentinian property. So if property owned by Argentina shows up in Germany there could be a claim against the property and it may be seized in order to compensate the bondholders. This gets scenario gets closer to reality now that a German Book fair has asked Argentina to participate in an exhibition at the Frankfurt Book Fair.
The interesting point for appraisers is when valuing property, if there is an encumbrance, the property could be worth less. The value of the art would have to be lower, if the only market it could be sold or exhibited in is Argentina.
According to Casey The organizers of the 2010 Frankfurt Book Fair have invited the South American country to showcase its artistic heritage. But the custodians of Argentina's national art collection are unable to comply with the German curator's request because of the country's ban on overseas art loans aimed at preventing litigant creditors from seizing government-owned assets.
"No art that's deemed part of the national patrimony is allowed to be lent overseas because it runs the risk of being seized by bondholders," said Maria Antonia Bychowiec of the museum's strategic administration division.
Casey continues Argentina may be eager to reach a deal with the holdouts over their debt so the country can restore access to foreign credit markets, for which resolving the defaulted debt is a precondition.
To read the full WSJ article, click HERE.
No comments:
Post a Comment