Stake in 410-pound gold cube may be sold in Austrian insolvency
me-metals: A stake in a 186-kilogram (410 pound) gold cube is being prepared to be sold by the administrators of insolvent Austrian investor Klemens Hallmann.
According to me-metals cited from mining.com, The businessman owns a 32% stake in the Castello Cube, created by German artist Niclas Castello, according to Creditreform, a creditors’ protection association. Hallmann’s share of the hollowed out, 24-carat conceptual artwork will be transferred to the restructuring administrator to sell to maximize compensation for his creditors, they said.
Using the current market price of $3,962 an ounce, the value of the gold in the entire cube would be around $23 million. Creditor associations didn’t specify how a sales process would work, or how the stake sale would be impacted by its ownership structure.
The Castello Cube stirred public attention in 2022 when it was placed mysteriously in New York’s Central Park for a day. The artwork, which was not intended to be sold according to its website, has been used to garner attention for an accompanying crypto token launched by Castello.
A spokesperson for Castello didn’t immediately respond to a request for comment while Hallmann’s representative declined to comment.
Hallmann, whose insolvency proceedings as an entrepreneur opened in August, has invested in sectors such as film and real estate. He has also seen the collapse of his real estate developer SÜBA AG into insolvency earlier this year. The company is now in liquidation after it failed to make a payment as part of its restructuring plan.
Creditors of Hallmann could receive an additional payment as part of a “super-quota” dependent on the sales process for his stake in the artwork, according to creditor association KSV1870. The restructuring plan approved by investors as part of the self-administration process otherwise envisages a 35% payment.
source: mining.com
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