Small Brown Hill. Photo / Supplied
A $500,000 Colin McCahon painting may have to be sold to settle a financial dispute between two companies.
Small Brown Hill, a large landscape painted by the renowned New Zealand artist in 1966, is security for a debt owed by businessman Kenji Steven.
The debt has not been paid, so
the company that lent the funds, Christchurch-based Bear Paw Limited, has put Steven's company GLFI Limited into receivership.
Receiver Paul Sills said he was still in the process of getting the art work valued, but it should cover the debt if the matter was not settled.
"I have taken possession of the painting and it's secure. It is sitting there waiting to see whether they sort themselves out. If they don't I'll need to look at options to sell it.
"It's an unusual receivership because it's just over a very specific piece of security."
He said large McCahons like this did not come on the market very often, so a sale would attract a lot of interest.
"This is a major piece of art, no question."
John Gow, director of the Gow Langsford art gallery in central Auckland, said Steven had sent it the 173cm by 92cm oil painting to sell.
"The receiver turned up and in a rather underhanded way took it from us."
He estimated it would be worth $450,000 to $500,000. His gallery had recently sold a McCahon of similar standing.
William McAloon, curator of historical New Zealand art at Te Papa, said Small Brown Hill was one of a group of paintings the artist did at the time, and similar New Zealand landscapes featured throughout his work.
"That gently curved hill shape is a kind of lead motif for McCahon."
There was a considerable market for his paintings in New Zealand and internationally, he said.
Steven said the situation was a private business affair and subject to commercial negotiations. He would not say what GLFI's business activities were.
"We believe that we can resolve the matter. I'd rather it didn't get disclosed in the media."
Bear Paw director Graham McDermid said the situation had been going on for "a wee while" but would not elaborate.
