Goldman Sachs Owns Part of the Leibovitz Loan

It was briefly mentioned in the NY Magazine article I posted about yesterday, that investment banking group Goldman Sachs owned or funded a portion of the Art Capital Groups loan to Annie Leibovitz.

Katya Kazakina writing for Bloomberg states that Goldman Sachs has approached ACG and requested to take over the loan. ACG denies this.

Kazakina states “We are deeply troubled by recent developments concerning Annie Leibovitz and Art Capital,” said Andrea Raphael, a Goldman spokeswoman, in an e-mailed statement. “We have proposed to Art Capital that we terminate the current loan agreement with their affiliate so that we can work directly with Ms. Leibovitz.”

Art Capital spokesman Montieth Illingworth denied such a proposal has been made. Raphael declined to say how much of Leibovitz’s loan Goldman owns.

The company’s statement hints at a discord between the joint creditors and adds a twist to the financial and legal turmoil surrounding one of the most-famous photographers

Kazakina continues Goldman and Art Capital stood to gain 12 percent interest from their one-year loan to Leibovitz, Illingworth said. This means, Leibovitz would have to pay $2.9 million on top of the $24 million loan. Art Capital would also gain a commission from the sale of the collateral, according to its complaint.

Raphael declined to say if Goldman would buy out its own share of the loan or pick up the entire tab, which also includes the interest and fees.

‘Wish Them Well’

“If Goldman Sachs wishes to purchase our interests in this loan, we invite a bid and wish them well in their future relationship with this borrower,” said Illingworth.

To read the full article, click HERE.