New York film financier Hudson Private LP is suing Bron Studios and Toronto-based film financing company Creative Wealth Media for allegedly failing to repay approximately US$14 million in loans related to four films: Greyhound, Capone, Bombshell and The Survivor.

The suit, filed by law firm Meister Seelig & Fein on Wednesday (Oct. 6) at the U.S. District Court in the Southern District of New York, claims that Jason Cloth, founder and CEO of Creative Wealth Media, falsely represented how loans for films such as Capone and Apple TV+’s Greyhound would be used.

For example, Hudson claims that US$3 million loaned for Greyhound was never given to Sony Pictures, the film studio, and was instead “utilized for purposes other than in connection with [Greyhound].”

The suit also alleges that while Cloth had shown Hudson documentation for $11.6 million in foreign sales on Capone to attract the investment, the collateral was “subsequently destroyed.” It goes on to claim that Capone was intended for a theatrical release but was instead released on premium VOD and “no reporting on sales has been provided.”

The suit alleges that Creative Wealth Media has defaulted on loans for all four films; and that Bron Studios, and Creative Wealth Media and Bron Studios joint venture Bron Creative, have also defaulted on Greyhound. Bron Studios did not respond to a request for comment.

According to the claim, Hudson alleges that the companies owe US$3.3 million for Capone; $US1.5 million for Greyhound; $4 million for Bombshell; and $US5.4 million for The Survivor, as well as interest.

Bron Studios and Creative Wealth Media have held a strategic partnership for several years through Bron Creative, which includes $100-million co-financing deals with Warner Bros. Pictures and MGM.

Image courtesy of Apple TV+