Annie Leibovitz has avoided default . . . for now, at least. In a joint announcement, Leibovitz and Art Capital Group revealed that they have agreed to a restructuring of the photographer's $24 million loan.
Under the agreement reached Friday, Art Capital Group will withdraw the lawsuit it filed in New York State Supreme Court on July 29, 2009. Leibovitz has also repurchased the right to act as exclusive agent in the sale her real estate holdings and photo archive, as long as she abides by the new agreement. The homes in Manhattan and Rhinebeck, New York are estimated to be worth $40 million, and the photography was valued by Art Capital Group at $50 million.
A spokesman for Art Capital Group would not disclose the duration or amount of the restructured loan. But, the fact that Leibovitz has repurchased the right to act as exclusive agent indicates that she can divest any of the collateral she has put up to satisfy her obligations to the lender.
Ian Peck, CEO of Art Capital Group, says, "We're gratified to be able to further assist Ms. Leibovitz to achieve financial stability and proud to have been of such value to her at this juncture in her life and career."
In the same prepared statement, Leibovitz was equally magnanimous: "In these challenging times I am appreciative to Art Capital for all they have done to resolve this matter and for their cooperation and continued support." She continues, "I also want to thank my family, friends and colleagues for being there for me and look forward to concentrating on my work."
The deadline for the loan Art Capital Group had extended to Leibovitz passed at 11:59 PM on Tuesday, with no agreement reached. Both parties, however, appear to have been motivated to avoid litigation, as evidenced by the resolution, which was attained ahead of the next scheduled court date of October 2, 2009.