After years of deadlock, the German state of Bavaria is prepared to bow to the new German Arbitration Tribunal for Looted Art in the dispute over the return of the Picasso painting “Madame Soler” to the heirs of a Jewish art collector. The heirs of Jewish art collector Paul von Mendelssohn-Bartholdy had demanded the restitution of the 1905 painting “Madame Soler” by Pablo Picasso (1881-1973) in 2009, but Bavaria’s State Painting Collections rejected this on the grounds that their own provenance research had come to the conclusion that it was not looted art. The New York art dealer Justin K Tha…