Bloomberg's Philip Boroff has the latest on the Salander bankruptcy proceedings, including the following:
"Salander and his wife owe about $17 million to First Republic Bank, a unit of Merrill Lynch & Co., secured by the 82nd Street town house, according to their bankruptcy filing. In addition, Lawrence Salander personally guaranteed about $40 million of debt that the gallery owes First Republic. The gallery has also filed for bankruptcy protection. Court papers filed by Salander say he owns a 'significant' collection of art that he can sell. But that's in dispute. The chief restructuring officer of the gallery has maintained that 231 artworks in the town house and the Salanders' Millbrook home belong to Salander-O'Reilly and should be stored in its 71st Street town house or in a warehouse for safekeeping. The Salanders countered in a filing that the art is theirs."
UPDATE: More from the New York Times.