Attorneys for Kim Basinger filed papers Monday that will convert her bankruptcy petition from Chapter 11 to Chapter 7, possibly depriving creditor Main Line Pictures of several million dollars.
The switch will allow Basinger to have her estate liquidated by a court-appointed trustee rather than creating a plan of her own to settle her $ 8 .1 million debt to the indie.
That ruling was mandated by an L.A. Superior Court last spring over her breach of contract for the film “Boxing Helena.”
Basinger’s team announced the move late Monday. Attorneys for Main Line were unavailable for comment.
“We had a plan that she was going to fund her plan through earnings,” said Basinger attorney Leslie Cohen. “Main Line said that plan was not valid because it did not compel her to accept work. They wanted a third party.”
Cohen said appraisers hired by the Basinger camp have set Basinger’s assets in the $ 2 million to $ 3 million range, far short of the original figure of $ 5 million that surfaced after the star filed for bankruptcy.
Basinger had proposed a plan to offer three years worth of earnings to cover Main Line and other debts, including an added $ 3 million she owes from ill-fated attempts at developing the town of Braselton, Ga.
Main Line refused the deal, reportedly fearing that Basinger would renege by refusing to work or by getting pregnant. The indie wanted a third party to keep Basinger honest in her employment efforts.
She added that Basinger was still expecting to win the appeal.