Annie Leibovitz - The $24 Million Question

I have posted several items over the past few weeks on the financial troubles of Annie Leibovitz and her loan of over $20 million from Art Capital Group. Her real estate holdings and the rights to her photographs were pledged for collateral and now Art Capital Group is stating the loan is in default.

The New York magazine just ran a lengthy article on Ms. Leibovitz, encompassing her past accomplishments along with her current financial predicament. It is an interesting story, with good background along with information on her business including her agreement with Phillips. The article is by Andrew Goldman and is entitled How Could This Happen to Annie Leibovitz: The $24 million Question.

The article states Leibovitz’s life had taken a decidedly dark turn. Her reference to “tough times” was significantly understated. In the past five years, Sontag and both of Leibovitz’s parents have died. Her debts now total a staggering $24 million, consolidated with one lender with whom she is engaged in a lawsuit and due in September. If she can’t meet that deadline, she may lose her homes and the rights to her life’s body of work.
The article continues The Art Capital loan effectively consolidated all of Leibovitz’s major outstanding obligations, including her mortgages. The interest rate is unknown, but the term is just one year. That means Leibovitz has to come up with $24 million, plus interest, by this September. Under the terms of the agreement, says a person familiar with the loan, Art Capital could be entitled to up to 22.5 percent of all the proceeds from the sale of any of Leibovitz’s work—even for two years after she’s paid off the loan. And that percentage could increase to close to 50 percent if she were to default. Potentially, Art Capital may be entitled to her homes and even her catalogue of past and future copyrights. “They got everything,” veteran New York real-estate attorney Howard Brickner says, shaking his head as he wades through the public records associated with the loan.

To read the full New York magazine article on Annie Liebovitz, click HERE.