In late 2023, Libbie Mugrabi sought a $3 million loan from Art Capital Group, offering a valuable Basquiat painting as collateral. However, complications arose when she attempted to secure additional funds by using another Warhol painting for a due diligence fee. Although Art Capital raised concerns about her creditworthiness and ultimately denied her the loan, they retained the Warhol, which led to a deteriorating relationship that underscored the challenges of art as collateral in lending situations.
In late 2023, socialite Libbie Mugrabi sought a $3 million loan using her valuable art collection as collateral, leading to complications with Art Capital Group.
Mugrabi’s agreement with Art Capital Group began with securing a loan against a Basquiat painting but soured when she offered a Warhol as collateral for fees.
The relationship deteriorated when Art Capital refused the loan after questioning Mugrabi’s creditworthiness and retained a Warhol painting instead.
This case highlights the complexities of collateral-backed loans and the often precarious balance between financial need and asset control.
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