Annie Leibovitz's $24M Loan Extended
As a follow-up to an earlier post on the lawsuit filed against Annie Leibovitz to collect on a $24 million loan the famed photographer took out from a high-end loan lending firm, it is reported that the parties have come to an agreement and the lawsuit has been dropped.
The loan made to Leibovitz by Art Capital Group had more than money at stake. It contracted to assume rights to all of Leibovitz's photographs in the case of default. It came due earlier this week on September 8th 2009 without fanfare, or payment. Just days after, Art Capital Group announced that it has granted Leibovitz a reprieve to pay back the loan.
There isn't word on how long the extension will be, but suffice it to say Annie Leibovitz is not out of the red yet. As part of the original contract with the lender, Leibovitz leveraged copyright to her works as well as townhouses in Manhattan and a country home in upstate New York.
What can you take away from the Leibovitz's loan default?
- Restructure your loan terms before default. By working proactively with lenders you may be able to sidestep a lawsuit, and the costs therein involved in litigation.
- Make minimum payments. Consider putting your monthly loan payments on auto-pay so the amount is deducted before you even have a chance to spend it. By consistently meeting your minimum payments, you can avoid default, litigation, headache, and your credit rating will thank you.
Leibovitz may be eating in and taking public transportation in the coming months, but she can be thankful to still call the photographic masterpieces she has captured over an expansive career, hers.
- Photographer Leibovitz Reaches Agreement With Art Lender (Wall Street Journal)
- Annie Leibovitz settles money problems with lender (NPR)
- Annie Leibovitz Sued for Breach of Contract (FindLaw's Law & Daily Life)
- Annie Leibovitz and Lender Focus on Legal Negotiations (FindLaw's Courtside)
- Collecting on Judgments FAQ (provided by Levey Filler Rodriguez Kelso & De Bianchi LLP)