Investor sues Bron Studios for $14.3 Million for not repaying Loan

On Wednesday, Film investor Hudson Private LP sued Born Studio for allegedly misusing loan proceeds and failing to repay $14 million to an investor.

Hudson Private LP filed the suit in federal court in New York. Hudson has invested in numerous Bron titles and alleges that the company has failed to meet its obligations with respect to four of them: Bombshell, Capone, The Survivor and Greyhound.

Hudson also sued Creative Wealth Media, a Toronto-based film finance company which is the key backer of Bron Studios, as well as Creative Wealth’s managing partner, Jason Cloth.

The suit alleges that Cloth made false representations to induce Hudson to make the film loans, including promising that Bron had the financial wherewithal to backstop the loans and guarantee repayment, and that the loan proceeds would be used in production.

According to the lawsuit, $3 million intended for use on the Sony film Greyhound was never conveyed to Sony, and was instead diverted to other purposes.

Hudson provided $3 million to finance Bombshell. According to the complaint, Hudson was entitled to recoup its investment plus 15%, plus 20% of net profits. The film grossed $61 million worldwide, but Hudson says it is still owed more than $4 million on the project.

Hudson also put up $3 million for Greyhound, and alleges it is owed $1.5 million. Additionally, the financier alleges it is owed $3.3 million on Capone, which was initially financed as a theatrical release with foreign presales, but later switched to premium video-on-demand amid the pandemic. Hudson also provided nearly $4 million to finance The Survivor, a boxing film directed by Barry Levinson and starring Ben Foster, which recently sold to HBO Films. The financier alleges it is owed more than $5 million that project.