I think "Metropolis" will be sold by Heritage with NO RESERVE and will generate
a lot of advance publicity in the months ahead. Why? Because the bankruptcy
trustee will demand whatever the market will bear. If Heritage, for argument's
sake, wanted to post a reserve or offer a "guarantee" - or even buy the poster
outright for, let's say, $500,000 for a future sale - I think the trustee would
say no. The trustee is the "consignor" in this case, bound by law. Why would
the trustee accept $500,000 - or ANY price - when there's a potential upside to
get more than that? One never knows. Remember, I could be wrong, but I seem
to recall this poster was once listed on Kenny's and Peter's old defunct site
for around $2 million, a "fishing price" just thrown out there for the right
millionaire with money to spend.
It's not a happy situation for Kenny, but when was the last time a high ticket,
nearly one-of-a-kind poster like this - was offered on the open market with NO
RESERVE? Under normal circumstances, Heritage would insist on a reserve or
desire to buy it outright as an investment for whatever price the market would
bear, whatever Texas laws would allow. But that would be a little odd because
there's no doubt Heritage would want to capture the most dollars NOW - in
relation to its planned big-budget marketing of this poster. This is big-time
news for the hobby. -d.
Date: Sun, 24 Jun 2012 08:14:31 +1000
From: johnr...@moviemem.com
Subject: Re: "Metropolis" Poster's Troubles Featured in the Hollywood Reporter
To: MoPo-L@LISTSERV.AMERICAN.EDU
........he estimates its value at just $250,000, a
number most observers view as comically low. High-end estimates put the
value of the poster at more than $1 million, which would make it the first
poster to cross that barrier in a public sale. Conversely, a sale at
Schacter's low estimate of $250,000 or even any number below $690,000 would
represent a softening of the poster market at a time when other collectibles
such as movie props and rare comics are selling for record
amounts.
If this poster is to be sold as part of a "liquidation
sale" presumably with no reserve, the "comically low" estimate of $250,000.00
might be not far off the mark.
Regards
John
----- Original Message -----
From:
David Kusumoto
To: MoPo-L@LISTSERV.AMERICAN.EDU
Sent: Sunday, June 24, 2012 7:58 AM
Subject: [MOPO] "Metropolis" Poster's
Troubles Featured in the Hollywood Reporter
I'm
not surprised that the "splash" publicity surrounding the infamous
"Metropolis" 3-sheet - and its brief offering for sale for $850,000 before it
was suddenly pulled from Sean and Peter's MoviePosterExchange site - could
lead to to more stories, albeit nearly four months later. There are many
interesting things in the article below that - while NOT NEW to hobbyists -
are still "new news" to the rest of the world. I find it intriguing that
The Hollywood Reporter boldly takes credit - asserting media publicity about
the poster - and the publication of its own story in March 2012 - led to its
seizure by federal authorities. The update below cuts through the tedium
of going through reams of court documents posted elsewhere. I now wonder
if editors at other news organizations - might "piggy-back" or "copy-cat" the
Hollywood Reporter - with updated stories of their own. -d.
World's
Most Expensive Movie Poster Seized in Bankruptcy CaseOne of four surviving
"Metropolis"
posters along with valuable "King Kong" and "Invisible Man" posters will be
sold as part of a liquidation auction.
12:01
PM PDT 6/22/2012 by Andy Lewis
A
rare and coveted Metropolis movie poster -- one of
only four known surviving copies from the 1927 silent classic -- has been
seized as part of a Chapter 7 liquidation bankruptcy case involving its owner
Kenneth Schacter,
a well-known collector. The poster will be auctioned off soon.
The case is being
overseen by the U.S. Bankruptcy Court in Los Angeles, with John Menchaca
serving as the
bankruptcy trustee.
The historical
importance of the Fritz
Lang-helmed movie and the rarity and beautiful art deco design of
the Metropolis poster
combine to make it “the crown jewel of the poster world," according to
Sean Linkenback,
a well-known poster dealer. (See the full poster below.)
The poster had been
offered for sale in March for $850,000 by
Movieposterexchange.com.
Estimates
vary as to what it would fetch on the open market.
Schacter
paid a still-record $690,000 for it in 2005.
In the bankruptcy filing,
he estimates its value at just $250,000, a number most observers view as
comically low.
High-end
estimates put the value of the poster at more than $1 million, which would
make it the first poster to cross that barrier in a public sale.
Conversely,
a sale at Schacter's low estimate of $250,000 or even any number below
$690,000 would represent a softening of the poster market at a time when
other
collectibles such as movie props and rare comics are selling for record
amounts.
Other key items in Schacter's collection include a King Kong poster from
1933, which
is considered by experts to be nearly as valuable as the Metropolis poster,
and a 1933
one-sheet teaser from The Invisible
Man.
The
total collection could be worth as much as $5 million, according to court
filings, but the exact value is uncertain because Schacter has ignored court
orders to provide a full and complete inventory.
It was THR's reporting about the poster being offered for sale that
pushed Schacter from a Chapter 11 reorganization bankruptcy to a Chapter 7
liquidation bankruptcy.
Schacter
had filed for bankruptcy protection on Dec. 12 to avoid a judgment over a
roughly $500,000 loan from Robert Mannheim, an investor
who provided money for Schacter to invest in posters to sell for a
profit.
When Mannheim learned about the possible Metropolis sale via Movie Poster
Exchange, it reinforced his belief that Schacter was trying to conceal assets
to avoid repayment.
(The
owners of Movie Poster Exchange were unaware of the bankruptcy case when
Schacter consigned the poster to them for sale and immediately withdrew it
from the site when they learned of the dispute.)
Mannheim filed a
motion to force a conversion to a Chapter 7, which the court granted March
12,
concluding that Schacter had indeed abused the Chapter 11 process by failing
to disclose his full inventory or complete financial assets.
Schacter was
required to immediately turn over his entire collection to a court-appointed
bankruptcy trustee, which he failed to do.
On
May 16, the court found Schacter in contempt, ordering him to submit a list
of
his holdings by May 31 or face a $2,000-a-week contempt fine.
Schacter submitted
an inventory of his collection, but the bankruptcy trustee still is trying to
assess whether it represents his full and total holdings at the time he filed
for bankruptcy (to account for any sales he may have surreptitiously made
after filing).
The
trustee is in possession of the Metropolis, King Kong and Invisible Man
posters but only
has a list of many of the other items.
Once the inventory
investigation is complete and creditors have submitted timely claims, the
bankruptcy trustee intends to hold a liquidation auction.
If
the court approves the request, the trustee is likely to use Heritage
Auctions, one of the largest auctioneers of movie posters, to conduct the
liquidation sale.
Given the size of the Schacter's collection, Heritage might auction it
in waves, but no final decision has been made.
The liquidation is expected to
begin before the end of 2012, but the exact date is dependent on the speed of
the inventory assessment and the court's ruling on the application to conduct
the sale.
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