Accepting valuable art as collateral is turning out to be a bad idea. First we had the Art Capital group nasty fight with Annie Leibovitz, in which Art Capital eventually caved and worked out a refinancing deal.
Now we’ve got JP Morgan Chase being forced to renounce a claim to a famous piece of Dutch artwork that had been collateral for a $50 million loan.
A Dutch multimillionaire had used it as loan collateral, which is now overdue and still has $27 million outstanding. A couple of years later, however, he sold it to the Rijksmuseum, whose collections are owned by the Dutch state.
“The bend in the Herengracht” is named after a famous canal in Amsterdam). It is a 17th century work by Dutch painter Gerrit Adriaensz Berckheyde.
JP Morgan went to court to lay claim to the painting in April, insisted it was the rightful owner. ABN Amro also laid claim to the painting in April, but later abandoned its legal action.
The AFP is now reporting that JP Morgan has confirmed that “the legal dispute … has been resolved and that all claims raised in the lawsuit have been dismissed with prejudice.”