Financier sues for Intermedia library
Company claims rights based on breach of contract
Film financier David Bergstein is looking to take control of Intermedia's film library.
R Media Acquisitions, a company associated with Bergstein, filed a breach of contract suit Wednesday in Los Angeles Superior Court against the German film company Internationalmedia and its America subsidiaries. According to the complaint, Internationalmedia owes R Media nearly $8 million, plus interest and late fees, on loans it failed to repay. R Media claims it is now entitled to take possession of the film library, encompassing 60-70 titles, which Internationalmedia put up as collateral for the loans.
Internationalmedia turned to R Media in September when it needed funds to finish shooting Jan de Bont's action film "Stopping Power," starring John Cusack, which had shut down. The suit says that R Media took over the film and made Internationalmedia a series of loans.
The suit alleges that Internationalmedia misrepresented its financial health at the time, falsely claiming that it had a positive net worth. The suit also contends that liabilities on the film, originally represented as being in the $7 million-$8 million range, rose to at least $15 million.
Internationalmedia CEO Konstantin Theoren resigned two weeks ago, and last week Internationalmedia filed for bankruptcy in Germany. It blamed its situation in part on Eluvium Holdings, an investor group that it said was linked to Bergstein, though Bergstein has denied any role in Eluvium.
In its suit, R Media claims that in the wake of the bankruptcy, no one is running Intermedia, the company's American subsidiary. It says that because no one is supervising the film library, it asks the court to appoint a receiver over Intermedia.