LOS ANGELES (CN) – Producers of “Terminator 4” accuse their financial broker of double dealing: persuading them to accept loans from a company he secretly worked for and collecting money from both sides in the deal. Halcyon Holding Group claims Kurt Benjamin’s tricky moves put it in danger of losing the rights to the “Terminator” franchise.
Halcyon says it hired Benjamin in 2007 to find financing for its purchase of the franchise. Benjamin claimed that he worked for a company called Theorem Group, according to the complaint in Superior Court. Over the next week, Benjamin connected Halcyon with four potential investors. Three were “clearly not interested at all,” and the fourth was Pacificor, a hedge fund that ended up financing the buyout, according to the complaint.
Halcyon says Benjamin worked for Pacificor, and intentionally mentioned the three dud investors to force the plaintiffs to work with Pacificor. Halcyon claims Benjamin collected a regular salary from Pacificor, in addition to the $500,000 fee he negotiated from Halcyon. Halcyon says it also agreed to pay Benjamin 1.5 percent of whatever money he could secure from Pacificor.
Halcyon claims Benjamin used the secret financial information it entrusted to him to negotiate a deal to serve himself and Pacificor. Armed with Halcyon’s projected numbers and the knowledge that it needed immediate financing to buy the “Terminator” franchise, Benjamin allegedly convinced Halcyon to offer Pacificor equity ownership in the franchise, in addition to the terms of the loan. Halcyon claims the equity ownership deal was entirely Benjamin’s idea.
When the parties met, Pacificor offered Halcyon $30 million, at 15 percent interest. Pacificor left the negotiation room, so that Halcyon representatives could discuss the offer, but Halcyon says Benjamin stayed behind, then left to inform Pacificor about Halcyon’s deliberations.
Halcyon says Benjamin falsely claimed that the loan would contain default protection, since the loan was supposed to be repaid before the release of “Terminator 4.” But the final agreement contained no protections, Halcyon says.
Halcyon demands $30 million from Benjamin and Theorem Group.
In a separate lawsuit, Dominion Group, another company controlled by the “Terminator” producers, sued Pacificor to stop the lien it filed on the franchise last week.
Patricia Glaser and Bryan Sullivan represent Halcyon and Dominion in both Superior Court complaints.