A collection of important Irish art with an estimated value of €6 million, currently on show at the University of Limerick, may have to be put up for sale as its owner Richard Wood, a former director of mining company Bula Ltd, attempts to meet a bank debt of more than €2.5 million.
]The High Court yesterday gave Mr Wood until October next to come up with "concrete propositions" for the sale of some of his lands to meet his debts. If that did not happen, Ms Justice Elizabeth Dunne said the court would make an order for the handing over of the works of art to the bank.
The Wood collection of Irish art includes several landscapes by James Arthur O'Connor, a lakeside view by Paul Henry, and several works by Louis Le Brocquy and other Irish scenes. It is understood the art collection, plus an extensive collection of antique mahogany furniture and sculpture, could be worth some €6 million.
The legal dispute dates back to the 1980s, when Northern Bank Finance Corporation Ltd secured guarantees from Mr Wood of Carrigrohane, Co Cork, in respect of facilities granted by the bank to Bula. The proceedings relate to the enforcement of two instruments held by the bank over certain items owned by Mr Wood and Barryscourt Ltd in respect of a debt owed to the bank. As of this month, the debt is for some €2.5 million with accrued €90,000 interest since the case was settled last year.
National Irish Asset Finance Ltd, as successor in title to Northern Bank Finance Corporation Ltd, is now seeking a court order for delivery of the works of art and furniture, which were the subject of the bill of sale in the 1980s and a debenture in the 1990s.
In an affidavit to the court, Mr Wood's solicitor, Gregory Ryan, said that, since the conclusion of the terms of settlement on the matter in May 2006, Mr Wood had made enormous efforts to raise the monies necessary to pay the €2.5 million before the amount started accruing interest in November of that year.
The collection had been valued by Christie's of London in January last year and Mr Wood was in contact with a collector of Irish art who expressed an interest in purchasing the entire collection. However, that purchaser withdrew after nine months.
Mr Ryan said it was Mr Wood's clearly expressed intention that the various works of art would be sold through Christie's unless a single buyer appeared who wished to buy the entire collection. It had always been Mr Wood's hope that the entire collection would remain together and in Ireland, preferably on public view.
On June 28th, 2006, Mr Ryan said Mr Wood and Barryscourt Ltd had signed irrevocable authorisation to Christie's to give an undertaking to National Irish Asset Finance to hold the works to the order of the bank and to pay the bank €2.5 million in priority to any other claim.
Mr Wood had entered into negotiations with property developers to sell a portion of his land to try and meet debts arising from the Bula affair, the court heard. Mr Wood had put his land on sale on the open market and wished the court to adjourn the proceedings pending the land sale.
Ms Justice Dunne asked the bank to take instructions on how best to put the items up for sale. Unless there was a concrete proposition and a signed contract of sale and a closing date relating to the land deal, she said she would make an order in October for the works of art to be given to the bank for sale.