Earlier, we noted that Annie Leibovitz is in money trouble again, with an entity called the Brunswick Group saying she has failed to pay an $800,000 advisory fee (for advice on how to get out of debt). Well, Felix Salmon dug through the lawsuit and discovered that one of Annie’s previous financiers, Art Capital Group, which once complained vociferously when Felix called it “predatory,” took her to the cleaners.
What kind of interest rate do rich people pay when they borrow money? In the case of Annie Leibovitz, the answer is something over 44%. That’s the most interesting revelation from the latest court case to embroil the celebrity photographer, wherein a company called Brunswick Capital Partners says that it helped Leibovitz refinance her Art Capital Group debt with a $40 million loan from Colony Capital.
The refinancing happened in March of this year; the original loan from Art Capital, for $24 million, took place in September 2008. Which means that Leibovitz racked up at least $16 million in fees and interest payments over the course of 18 months — and that’s not including any payments that she did manage to make to Art Capital along the way. That’s a rate of something over $10 million per year on the initial loan, or 44%.
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