Post by Admin on Jan 5, 2019 21:19:42 GMT
variety.com/1994/film/news/cannon-creditors-petition-for-company-s-liquidation-120360/
Charles Bronson’s Zuleika Farms Prods. and seven other Cannon Pictures Inc. creditors filed a petition late Tuesday to push the indie into involuntary bankruptcy proceedings.
The suit threatens to liquidate Cannon in order to protect$ 6 million the creditors claim Cannon owes them.
Cannon execs did not return calls Tuesday or Wednesday.
The largest of the creditors is Everyvision Inc., a firm that arranges financing for film companies, which is seeking $ 2.5 million. Bronson’s company is next in line, claiming nearly $ 2 million.
Stephen Chrystie, the lawyer representing the creditors, said the suit was prompted by last week’s announced sale of a controlling interest in Cannon to VMI Acquisitions Inc., a New York company owned by investors John Power and Gilbert Federbush. In the transaction, VMI agreement to pay off $ 2 million in debt owed to a company owned by former Cannon topper Yoram Globus, without any mention of paying off other creditors.
Cannon’s largest creditor, Credit Lyonnais, owed roughly $ 20 million, also expressed uneasiness.
“We are deeply concerned about the transfer of Cannon to a new group without the consideration of repayment to creditors,” said Fred Spar, a bank spokesman. “And we fully understand why this Chapter 7 filing was taken.”
Charles Bronson’s Zuleika Farms Prods. and seven other Cannon Pictures Inc. creditors filed a petition late Tuesday to push the indie into involuntary bankruptcy proceedings.
The suit threatens to liquidate Cannon in order to protect$ 6 million the creditors claim Cannon owes them.
Cannon execs did not return calls Tuesday or Wednesday.
The largest of the creditors is Everyvision Inc., a firm that arranges financing for film companies, which is seeking $ 2.5 million. Bronson’s company is next in line, claiming nearly $ 2 million.
Stephen Chrystie, the lawyer representing the creditors, said the suit was prompted by last week’s announced sale of a controlling interest in Cannon to VMI Acquisitions Inc., a New York company owned by investors John Power and Gilbert Federbush. In the transaction, VMI agreement to pay off $ 2 million in debt owed to a company owned by former Cannon topper Yoram Globus, without any mention of paying off other creditors.
Cannon’s largest creditor, Credit Lyonnais, owed roughly $ 20 million, also expressed uneasiness.
“We are deeply concerned about the transfer of Cannon to a new group without the consideration of repayment to creditors,” said Fred Spar, a bank spokesman. “And we fully understand why this Chapter 7 filing was taken.”