Katya Kazakina follows up on Andrew Goldman’s revelations in New York that Goldman Sachs wants out of its portion of the Annie Leibovitz loan that Art Capital Group holds. The Bloomberg reporter has ACG spokesman Montieth Illingworth on the record laying out terms for the deep-pocketed firm
“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.[…] If Leibovitz doesn’t default, Art Capital would receive a 10 percent commission on copyright and real estate sales, Illingworth said. If she does, the commission would increase to 25 percent of the sale of the collateral (the higher rate includes 11 percent to 13 percent in legal, real estate and other fees, Illingworth said.)
“We have interest in the loan agreement and we have interest in the sales agreement,” Illingworth said, referring to the contracts related to the $24 million loan. “They would have to make an offer to buy out both.” […]
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.
Kazakina could not get the Goldman Sachs representative, Andrea Raphael to comment:
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.
Goldman Partly Owns $24 Million Leibovitz Loan, Offers to Help (Bloomberg)