Deal staves off Annie Leibovitz bankruptcy

New York: US photography icon Annie Leibovitz won a reprieve Friday from possible bankruptcy after her creditors agreed to an extension of a 24-million-dollar loan.The settlement, announced in a joint statement, came three days after an initial deadline expired for Leibovitz to pay back the money, or risk losing her photo back-catalog and string of luxury properties, which had been pledged as collateral. Art Capital, a lending agency, said the agreement meant "withdrawal of the suit... filed against Ms Leibovitz on July 29, 2009 and extends the maturity date for the 24 million dollar loan." The statement did not say how much longer Leibovitz, one of the most famous portrait photographers in the world, had been given. In addition, Leibovitz has bought back Art Capital`s rights "to act as exclusive agent in the sale of her real property and copyrights. Ms Leibovitz will therefore retain control of those assets within the context of the loan," the statement said. That means Leibovitz regains control of her archive, three Manhattan houses and a country residence in New York state, with the option to sell her assets. But if she is unable to meet the undisclosed deadline, that property will still be considered the collateral, said Art Capital. The New York-based company specializes in short-term loans, although longer term credits are available, secured by property such as paintings and other art works. Leibovitz expressed gratitude for the extra time. "In these challenging times I am appreciative to Art Capital for all they have done to resolve this matter," Leibovitz said. "We?re gratified to be able to further assist Ms Leibovitz to achieve financial stability and proud to have been of such value to her at this juncture in her life and career," said Ian Peck, CEO of Art Capital Group. If she cannot work out a deal with Art Capital, Leibovitz may have to file for bankruptcy, which would protect her assets until a court decides how to proceed. For decades Leibovitz, 59, shot cover photos for Rolling Stone, Vanity Fair and Vogue magazines. Famous shoots include a portrait of a nude John Lennon hugging his wife Yoko Ono -- taken hours before the Beatle was murdered -- nude and pregnant actress Demi Moore, and portraits of Queen Elizabeth II. Last week she came under fresh financial pressure when an Italian photographer sued her for allegedly stealing images he took. Paolo Pizzetti sued Leibovitz in federal court in Manhattan, alleging she took material he shot at sites in Rome and Venice for her own use in an advertising campaign. He is seeking a halt to use of the images and compensation of 150,000 dollars for each alleged infringement. Over the course of her long career, Leibovitz has earned a reputation for perfectionism and extravagance. She put former action icon and current California Governor Arnold Schwarzenegger on top of a mountain, submerged black actress Whoopi Goldberg in a bath of milk and closed France`s Versailles palace to shoot Kirsten Dunst posing as Marie-Antoinette. New York`s chattering classes are aghast at the renowned photographer`s downfall, making her the latest spectacular victim of the bad debt crisis and nationwide recession. Bureau Report