Auction house Sotheby's reduces guarantees for sellers and takes Bank of America loan in the amount of $ 250 million

According to the agency Bloomberg, the auction house Sotheby's took in the Bank of America loan in the amount of $ 250 million, as well as the end of the year reduced by one-third guarantee for sellers. These actions are due to hedge during the global economic crisis, and «to ensure additional liquidity in light of recent turmoil in global financial markets».

Bank of America Corp. gave Sotheby's even a large sum - 290 million dollars, which, according to representatives of the auction house Phillips, Diana (Diana Phillips), «strengthens our position» in the current crisis.

Sotheby's, which stocks over the past year fell by 78 percent, 10 October reduced the total amount of guarantees to 458.5 million dollars last year to 306.1 million dollars this year. However, to ensure these funds Sotheby's had to resort to the assistance of third parties, these are not called. Over the past year, the proportion of such guarantees has increased almost 10 times: from 6.8 million to 63.3 million dollars. As stated in the message, the auction house, the purpose of this action is the allocation of risk between Sotheby's and other independent partners.

For example, at an auction of works of the Impressionists and modernists in New York, to be held on November 3, will be exhibited picture Kazimir Malevich «Suprematist composition» (1916). It is expected to be sold for 60 million dollars. In the catalog of the work will be marked as having «irrevocable bid». This means that third party guarantees the first bid at the auction lot. «If this rate will be the only, the sponsor gets the job for that amount plus the buyer's premium», - explains Veygman Matthew (Matthew Weigman), the representative of Sotheby's in London. «If the work is sold for a large sum, he gets part of the allowance».

Source: bloomberg.com