Colony bails out photographer Leibovitz

Colony Capital has come to the rescue of another celebrity struggling with debt after agreeing to become the sole creditor to famed photographer Annie Leibovitz.

Leibovitz

The Los Angeles-based firm, founded by Tom Barrack, confirmed it had formed a partnership with Leibovitz adding in a statement it would invest “patient capital where we can allow value to be achieved over the long-term”.

A Financial Times report added Colony will become Leibovitz’s sole creditor and help her market a library of photographs, including her Vanity Fair magazine cover of Demi Moore and the Rolling Stone shot of a nude John Lennon and Yoko Ono. Sources told PERE, the deal The is believed to be secured by more than $20 million of real estate in addition to Leibovitz's art work.

In a statement, a Colony spokesman said the firm had “long admired Ms. Leibovitz’s talent and creativity. She has an incredible gift for producing iconic images of some of the most important and interesting people of our time.

“We are delighted to be able to do that here by partnering with Ms. Leibovitz in a business relationship that allows her to continue to flourish as an artist while together we seek opportunities to enhance the value of the magnificent body of work she has created over the past 40 years.”

We are delighted to be able to do that here by partnering with Ms. Leibovitz in a business relationship that allows her to continue to flourish as an artist while together we seek opportunities to enhance the value of the magnificent body of work she has created over the past 40 years. Colony Capital

Leibovitz is expected to retain the rights to more than 100,000 photographs and about 1 million negatives stored in New York, the FT said. Leibovitz faced the risk of losing those rights and three Manhattan townhouses after falling behind on debt payments to Art Capital, a New York-based lender that provides term, bridge and revolving lines of credit. Leibovitz had reportedly agreed to borrow up to $24 million from Art.

Art Capital managing director Terence Doran declined to comment on the Leibovitz loan, other than to say the firm was a merchant banking operation that provided financing for non-traditional assets including intellectual property, art and real estate. Colony declined to disclose financial details.

Sources familiar with the matter told PERE, Colony first initiated contact with Leibovitz following her much-publicised financial difficulties.

In May 2008, Colony saved Michael Jackson’s Neverland ranch from the brink of foreclosure by acquiring debt with a face value of around $25 million against the famous Santa Barbara property from Fortress Investment Group.

Barrack was instrumental in closing the deal, which saw Colony invest more than $3 million on landscaping and repairs to the property's electrical and plumbing systems in preparation for a sale prior to the singer’s death, according to the Wall Street Journal at the time. The FT added today Colony is planning to put the property up for sale with bids expected to range between $50 million and $100 million.