Berry-Hill Galleries Files Chapter 11

NEW YORK CITY

:Berry-Hill Galleries, Inc, a fine art gallery specializing in American paintings and sculpture, and Coram Capital LLC, an affiliate, announced on Thursday, December 13, that they have filed for protection under Chapter 11 of the United States Bankruptcy Code in the Southern District of New York. The gallery will continue to be open.

"Berry-Hill took this action to protect its business and customers while it attempts to resolve disputes regarding a lawsuit filed in August 2005 against the company by one of its lenders, ACG Credit Company LLC [ACG], an affiliate of Art Capital Group," the gallery said in a prepared statement. "Berry-Hill believes that the lawsuit, which alleges, among other things, technical defaults on a $19.75 million loan, is without merit and has made several unsuccessful attempts to settle with ACG amicably over the past four months," it continued.

"Berry-Hill Galleries is built on many decades of experience, expertise, morals and tradition," said James Berry Hill, a director of Berry-Hill Galleries, Inc. "Today's action is in response to a lawsuit, which we believe to be without merit, brought by our lender, ACG Credit Company. That litigation has effectively prevented us from securing funding that would have otherwise been obtainable. While our business is stronger than ever and our assets far exceed our liabilities, the adverse effects of this litigation have led us to conclude that a bankruptcy filing is the most effective means to address our short-term needs while protecting our business, clients and partners," he stated.

"Our loyal and valued customers are as important to us as the great masterpieces that we handle," added Frederick D. Hill, a director of Berry-Hill Galleries, Inc. "During what we believe will be a short time under Chapter 11 protection, we will provide our customers and partners with the same level of service, stability and expertise that they have come to expect from our galleries."

Berry of London, founded in the Seventeenth Century, was the ancestor firm from which Berry-Hill Galleries, Inc has evolved. Today, the gallery is under the leadership of cousins James Berry Hill and Frederick D. Hill and their children David and Daisy Hill.