Lehman is dusting off $8 million worth of paintings it has in warehouses in New York and Paris, hoping to show to interested dealers. Meanwhile Kathy Fuld is unloading $21 million worth of paintings in an auction tonight at Christie’s.
The difference between the two parties that are unloading the art work? The Fulds don’t need the money. Lehman does.
Smartly, Dick Fuld got a $20 million guarantee a while back, so he makes that no matter what.
What’s for sale tonight?
Guardian: …The sale of drawings from the Fulds’ collection, including three Willem de Koonings, was announced a few days after Lehman declared bankruptcy in September. The Fulds still own a sizable art collection and five homes, including a $21m Manhattan apartment. Kathy Fuld is a well-known modern art collector and a trustee of New York’s Museum of Modern Art.
The Fulds’ sale also includes five Barnett Newmans, four Arshile Gorkys and four Agnes Martins. De Kooning’s kinetic orange-haired 1951 Woman in graphite, charcoal, pastel and oil on paper is expected to fetch as much as $4m. His drawing Two Women could raise up to $3m. The pieces will be auctioned in Christie’s evening sale at the Rockefeller Plaza.
And what about Lehman?
Lehman filed court papers on Monday seeking authority to pay fees to art handlers who provided warehousing and framing services before its bankruptcy. It said it needs to pay the fees so it can access the artwork and show it to potential buyers.
About $8m worth of art is being stored in warehouses in New York and Paris, Lehman said. Other pieces of artwork are still located in the company’s offices, the court documents showed.
Following its bankruptcy, Lehman’s core US brokerage business and its New York headquarters were sold to Barclays. Lehman has sold other assets in the past few weeks. It gained court approval last week to sell a corporate plane for $24.9m and has filed papers to sell 50 acres of undeveloped land in Hamilton Township, New Jersey, for $6.25m.
In the agreement between Barclays and Lehman from September 22, Barclays was given the right to keep the art at Lehman’s headquarters at 745 Seventh Avenue in place for a year. During that time, Barclays will have the opportunity to buy the art. If the British bank doesn’t want it, it must return it to Lehman, which can then put it up for auction.
Bain Capital, which agreed to buy Lehman’s money manager, Neuberger Berman, for $2.15bn, got a similar deal. It gets to keep the artwork located at 605 Third Avenue for a year. In both agreements, the collection can be broken up, so that both Barclays and Bain can pick and choose the pieces they want.
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