The art that is supposed to be auctioned at Chrisite's in June as part of an agreement Salander had with First Republic Bank. This particular collection was invested in early artworks dating from the 12 century to the early 18th century. Salander thought this sector was undervalued. There is also potential issues of unsecured creditors and bank creditors fighting over proceeds as well with First Republic Bank stating it has made concessions to other creditors to avoid additional legal issues.
Pieces may be offered in June, said Robert Feinstein, a lawyer who represents unsecured creditors in the case.
“We are preparing for a sale in that time period,” Feinstein said in an interview.
Feinstein disclosed in U.S. Bankruptcy Court in September that there were “advanced negotiations” with Christie’s International about a consignment. In the interview, he said that there hasn’t been an agreement with an auctioneer. Toby Usnik, a Christie’s spokesman, declined to comment.
The gallery collapsed amid lawsuits alleging that proprietor Lawrence B. Salander, now 60, sold art without permission and without remitting proceeds. More than 400 people and businesses have filed court papers seeking to retrieve money and art.
Last year, the dealer was charged with 103 counts of fraud, forgery and other crimes. He pleaded not guilty and is free on $1 million bail. Prosecutors said collectors, artists and investors who did business with Salander lost more than $92 million.
U.S. Bankruptcy Court in January approved a settlement between unsecured creditors and Bank of America Corp.’s First Republic unit that cleared the way for an auction. First Republic lent the gallery about $30 million starting in 2002.
“The bank had every right to be paid back first from the proceeds of art,” Feinstein said in the interview, citing loan documents.
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