MIAMI
Bankrupt hedge fund founder George Weiss has secured court approval to auction 16 artworks through Sotheby's Inc. targeting $68.9 million in proceeds to reduce a 2018 Bank of America loan secured by the collection.
Weiss, who filed for personal Chapter 11 bankruptcy last year, won approval for the agreement during a Wednesday hearing in U.S. Bankruptcy Court for the Southern District of Florida. Sotheby's will conduct the sale in November, with promotional showings in Paris, London, Hong Kong and New York.
The underlying debt originated as a $132.6 million Bank of America loan in 2018. The current outstanding principal stands at $93.9 million, according to a Sept. 25 court filing. Under the agreement, Weiss must direct auction proceeds to reduce the balance to at least $25 million by Dec. 31, 2026.
Sotheby's won selection over Christie's after weeks of negotiation. The auction house guaranteed a floor price on six of the 16 pieces, meaning it will cover any shortfall if the aggregate fails to meet the threshold.
Weiss' collection includes works by Francis Bacon, Paul Cezanne, Pablo Picasso and Andy Warhol. The 16 pieces heading to auction represent a fraction of his holdings, which comprise more than two dozen additional works.
Judge Robert Mark approved the agreement Wednesday. Paul Battista, Weiss' lawyer, told the court that marketing such high-value art within a bankruptcy framework presents challenges, as potential buyers typically operate outside formal restructuring processes.
A prior court-approved sale last year of a Claude Monet painting fetched $36.5 million. A subsequent consignment effort with a fine art gallery yielded no sales.
Weiss' bankruptcy filing stemmed from a dispute with Jefferies Financial Group Inc. over more than $100 million in debt. Lawyers said proceeds exceeding the Bank of America obligation would flow to Jefferies and other creditors.
