Portuguese Authorities Seize Blue-Chip Artworks From Slippery Mega-Collector José Berardo to Pay Down His $1 Billion in Debt

Portuguese authorities have
announced they are seizing mega-collector José Berardo’s modern and
contemporary art collection in a bid to cover the businessman’s
immense debts. The 75-year-old, who has been described as the
“Portuguese Charles Saatchi,” used his 900-piece collection—which
includes works by Picasso, Bacon, and Basquiat, among others—as
collateral for bank loans of nearly €1 billion ($1.11 billion),
the Guardian reports.

A spokeswoman for Portugal’s
culture ministry confirmed that a court ruling had authorized the
confiscation of the valuable trove. The ruling came after three
Portuguese banks failed to collect on their debts and had been
hampered from seizing Berardo’s collateral because much of the
artwork was on public display in museums. The majority of the works are on loan to the
Berardo Collection Museum in Lisbon, one of the country’s most
visited art museums.

The state was forced to
intervene after three separate banks—the Caixa Geral de Depósitos,
the Banco Comercial Português, and the Novo Banco (formerly
Espírito Santo)—failed to access the artworks. The banks filed a joint lawsuit in April to
recover their debts after Berardo allegedly defaulted on
payments.

While Berardo reportedly took
out the loans under three different holding companies, the
collector has denied accruing any debt personally. He burst into
laughter while being questioned in Portuguese parliament earlier
this month after an MP suggested the banks might seize art from his
collection, according to the Portugal
Resident. 

It is unclear whether Berardo’s
creditors, which include Portugal’s state bank, will be able to
claim parts of the collection that have been on loan to the Berardo
Collection Museum since 2006 under an agreement with the Portuguese
government. Representatives for the museum, as well as Berardo’s
lawyer André Gomes, did not immediately respond to a request
for comment.  

The star-studded collection also
includes work by Piet Mondrian, Joan Miró, and Gerhard Richter.
Berardo’s holdings were last valued by Christie’s in 2006 at €316
million ($352 million), according to reports—but they are likely to
be worth much more in 2019 amid skyrocketing prices for modern and
contemporary art.

According to media reports, this is not the first time the
billionaire’s assets have been seized. His spectacular country
house on the island of Madeira has already been taken up by
Portuguese authorities.

The post Portuguese Authorities Seize Blue-Chip Artworks
From Slippery Mega-Collector José Berardo to Pay Down His $1
Billion in Debt appeared first on artnet News.