Annie Leibovitz just bought some time—and her photographs back.

Today Art Capital Group, the loan company that sued Leibovitz over the terms of a $24 million loan, announced it will drop its lawsuit against her.

What’s more, the company is giving Leibovitz more time to repay the loan and has allowed her to retain control of her photo archive.

A statement issued Friday by both parties said Leibovitz has bought back control of her physical property—presumably including her two houses—and copyrights. Previously, Art Capital had said it had the right to sell Leibovitz’s homes and photo archive under the terms of the loan.

In September 2008, Leibovitz entered into an agreement with Art Capital Group to borrow $22 million, later upped to $24 million, with her entire photo archive and her two houses as collateral. Art Capital sued Leibovitz in July, alleging she is refusing to make payments or follow other terms of the loan. The loan was due September 8.

In the statement, Leibovitz said: “In these challenging times I am appreciative to Art Capital for all they have done to resolve this matter and for their cooperation and continued support.”

It was a marked change in tone from her last statement, made July 30, in which she accused Art Capital of “continued harassment and attention-getting efforts.”

“We’re gratified to be able to further assist Ms. Leibovitz to achieve financial stability and proud to have been of such value to her at this juncture in her life and career,” said Ian Peck, CEO of Art Capital Group, in a statement.

Art Capital Group may have been trying to avoid a situation in which Leibovitz filed for bankruptcy protection and a court seized control of Leibovitz’s debts. So far, there are no indications Leibovitz is considering bankruptcy.

Separately, Art Capital Group's lawsuit against Getty Images continues. Getty announced  earlier this year it would represent Leibovitz for some current assignments, a deal which Art Capital said violated confidentiality agreements it had with Getty. "The Getty suit continues and we will pursue it vigorously," Art Capital spokesperson Montieth Illingworth said Friday.

Illingworth declined to answer several other questions about the settlement with Leibovitz.

Leibovitz still faces several outstanding lawsuits.
Related story: Leibovitz Not Out of the Woods Yet



Below is a press release issued jointly by representatives for Leibovitz and Art Capital:

PRESS RELEASE

New York, NY - September 11, 2009 - Art Capital Group and photographer Annie Leibovitz jointly announced today that they have reached an agreement that provides a further restructuring of Ms. Leibovitz’s finances and resolves pending legal matters between them.

The agreement will result in the withdrawal of the suit that Art Capital filed against Ms. Leibovitz on July 29, 2009 and extends the maturity date for the $24 million loan Art Capital provided Ms. Leibovitz, which was originally due on September 8, 2009. Ms. Leibovitz has also purchased from Art Capital its rights to act as exclusive agent in the sale of her real property and copyrights. Ms. Leibovitz will therefore retain control of those assets within the context of the loan agreement which shall prevail until satisfied.

“In these challenging times I am appreciative to Art Capital for all they have done to resolve this matter and for their cooperation and continued support,” Ms. Leibovitz said. “I also want to thank my family, friends, and colleagues for being there for me and look forward to concentrating on my work.”

“We’re gratified to be able to further assist Ms. Leibovitz to achieve financial stability and proud to have been of such value to her at this juncture in her life and career,” said Ian Peck, CEO of Art Capital Group.