Leibovitz

On November 17, 2009, several celebrity-designed luggage will go up for auction at Sotheby's. The purpose is to celebrate the 150th anniversary of the Red Cross, which is about as worthy an organization as one can imagine. In all seriousness – most people have no idea the true range of services and support that the Red Cross offers. If a soldier overseas needs to be reached because of an emergency back home, the family can call the Red Cross, which will do all the legwork. So, it's exciting to see some big names getting behind this cause.

Among the designers, however, are some artists who have been in the news lately. Annie Leibovitz, fresh from her negotiations with Art Capital Group over her $24 million loan, is finding some time for goodwill despite her financial situation. Her contribution is a red-lined backpack designed specifically for camera equipment.

Damien Hirst has also gotten in on the charitable action. The taxidermist artist who developed a name dumping maritime life in formaldehyde and affixing as many diamonds as possible to skulls has put together a tall black trunk with little drawers to hold surgical devices – which is what Hirst uses to build his ... ummmm ... stuff. This piece, in particular, should be in high demand, now that a Damien Hirst piece may actually have been touched by Damien Hirst. Last November, he laid off 17 of the 22 people involved in his pill cabinet creation.

Let's hope that these pieces – and the others brought to Sotheby's in two months – sell for fantastic prices. Art market be damned! This event is for a great organization, and every extra dollar of success will help someone out who needs it.

In a statement revealed to Luxist, Art Capital Group has announced that it will withdraw its lawsuit against celebrity photographer Annie Leibovitz, as they have reached an agreement that will lead to the restructuring of her debt. The resolution extends the maturity of Leibovitz's $24 million loan – which was originally due on Tuesday. It also entails Leibovitz's purchase from Art Capital Group the rights to act as exclusive agent in the sale of her real estate holdings and copyrighted material.

So, the artist retains control of her assets, according to the Art Capital Group announcement, "within the context of the loan agreement which shall prevail until satisfied." Essentially, if she doesn't meet the undisclosed terms of the restructuring, she could again risk losing the property she has put up as collateral.

Leibovitz says, "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."

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."

With the close of September 8, 2009, Annie Leibovitz saw her deadline with Art Capital Group pass. The famous photographer could now lose her photo archive and New York real estate holdings. Yet, both sides are staying tight-lipped on what comes next.

Matthew Hiltzik, a spokesman for Leibovitz, says, "Annie is continuing to work to resolve this matter with Art Capital, according to a report by NPR. Montieth M. Illingworth, who is the spokesman for Art Capital Group, told me by e-mail today that there is "nothing to report right now."

What remains are choices ... all of them belonging to Art Capital Group. The art finance institution could allow Leibovitz to renegotiate, extend the loan's timeframe or take a portion or all of the collateral. The estimated value of all the collateral posted is between $80 million and $90 million, though the artistic and real estate assets may not sell as easily as some expect.

It seems as though Art Capital Group is approaching the situation delicately, as it wants to avoid the messiness of bankruptcy proceedings. The answers may come at the next court date, scheduled for October 2, 2009, unless the parties can come to an agreement before then.

In the ongoing legal struggle between celebrity photographer Annie Leibovitz and the art community's financial institution, Art Capital Group, the judge has decided to extend the clock. Though the photographer's payment is still due on September 8, 2009 (Tuesday), the next hearing with New York State Supreme Court Justice Bernard Fried won't occur until October 2. The experts, according to Bloomberg News, are chiming in that Art Capital Group is unlikely to declare Leibovitz in default, as that could push her into bankruptcy, which could cost the lender some cash and control over its own financial fate. Her real estate is estimated to be worth close to $40 million, and Art Capital Group puts the worth of her photo archive at above $50 million ... a bit higher now, thanks to the recent LeBron James shoot for Vanity Fair.

As if a lawsuit in state court weren't enough, Leibovitz may find herself in front of a federal judge, soon. Italian photographer Paolo Pizzetti filed the complaint, alleging that Leibovitz had hired him to take site-scouting photos and then used his product – without permission – in a LavAzza calendar, passing the photos off as her own. Specific sites shot include the Trevi Fountain in Rome and Plaza San Marco in Venice. The calendar was released last October. Pizzetti is looking for $150,000 per infringement and other unspecified damages. The Leibovitz camp has no comment yet, as it hasn't reviewed Pizzetti's filings.

Now that she's staring down a $24 million lawsuit, Annie Leibovitz is running out of choices. With Art Capital Group claiming the rights to her photo archive, real estate and other assets posted as collateral, some experts say bankruptcy would buy her some time to find a new plan. But, it would come at the cost of privacy, as the photographers finances would be thrust into the public eye.

Neither Leibovitz's attorneys nor financial advisers returned Bloomberg News' calls for comment, but experts suggest that desperate times call for desperate measures. Filing for protection would push litigation into the future and secure the artist a bit of leverage. Hell, maybe it would buy her some time to see if Miley Cyrus wants to get naked again. I don't know if that would be worth $24 million, but I'm sure it would help Leibovitz to chip away at the debt.

Industry insiders seem to call Art Capital Group a capital source of last resort, though that's probably a bit unfair. If you're pledging collateral or are otherwise transacting in an illiquid market, common sense is necessary. And, let's face it, if traditional banks played in this space, Leibovitz may not have been hit with such tough terms. But, it's hard to believe she didn't know the rules of the game.

Mum's the word for now on Leibovitz's future. One thing is certain, however: she didn't spend the money on makeup.

[Thanks, Jason, for the makeup crack]