The group of creditors that sued last week to put Cannon Pictures Inc. in involuntary bankruptcy proceedings filed an emergency motion to appoint a trustee to run the company. The creditors include Charles Bronson’s Zuleika Farms Prods.
The motion, filed late Friday, said that a principal in VMI Acquisitions Inc. , the company that recently acquired Cannon, is a convicted felon with a history of stripping companies.
The exec, Gilbert Federbush, did not return a call Friday. Cannon execs also did not return calls.
The filing said Federbush has been involved in at least six failed businesses and quoted a judge who presided over the bankruptcy of one of those ventures, calling the exec’s actions a “wholesale plunder … of remaining cash assets.”
VMI announced that it acquired a controlling stake in Cannon earlier this month. A regulatory filing said the company paid roughly$ 1 million for 51% of the company owned by former prexy/CEO Christopher Pearce and agreed to repay another $ 200,000 loan made to Pearce by ING Bank.
Additionally, VMI agreed to make a $ 2 million “capital contribution” to Cannon that will be specifically earmarked to pay off Cannon’s debt to Melrose Entertainment. Melrose is owned by former Cannon topper Yoram Globus. The filing said nothing about repaying other creditors.
The motion will be heard today.