LOS ANGELES (CN) – Three film financing companies claim a slew of producers owe them more than $17.7 million in loans.
Dutch company Aramid Entertainment and its Cayman Islands affiliate say they loaned Capitol Films $6 million for the movie “Five Dollars a Day.” Capitol promised to repay $4.5 million within 3 months of finishing the film, and the rest on an unspecified maturity date, according to the Superior Court complaint.
Aramid says Capitol still owes it $5.6 million.
Aramid claims it loaned Bontempo Holdings $8.7 million for the movie “Love Ranch,” and another $2.4 million to Tenderloin Holdings for “Bad Meat.”
Those loans are still outstanding, Aramid says.
In April 2009, Aramid says it sued in Federal Court over the unpaid loans. The defendants admitted to owing $17.7 million, Aramid claims.
It claims that the judge in the underlying lawsuit issued an order allowing Aramid to hold a foreclosure sale “of all right, title and interest” in the three movies.
Aramid says it had its subsidiary, Cayman Film Holdings, buy “Five Dollars a Day” and “Love Ranch” for a total of less than $4 million.
But Aramid says Bontempo and Capitol refused to hand over physical property related to the movies.
Aramid also sued over loans for the movies “Edge of Love,” “Black Water Transit,” “Incendiary” and the THINKfilm movie “Good,” as well as interest on a forgiven loan to a Capitol affiliate and a loan to IM Junior Debt Holding Company, intended to help it buy the assets of a German film company.
Named as defendants are Bontempo Holdings, Bontempo Productions, Capco Group, Capitol Films Limited, Capitol Films US, Cerulean Productions, CG Acquisitions, De Lane Lea (Post Production) Limited, Film Rights Holding Company, IM Junior Debt Holding Company, Library Asset Acquisition Company Ltd., Tenderloin Holdings, THINKFilm, and David Bergstein.
The plaintiffs are represented by Eric Harbert with Stroock Stroock & Lavan.