BERLIN — German film group Advanced Medien on Thursday disputed a $2.1 million lawsuit filed in a U.S. court by Comerica Bank.
The claim was filed against Advanced Medien’s rights division, Advanced Licensing, for payment of credit provided to L.A.-based production outfit Unified Film Organization (UFO), a 51% Advanced subsidiary.
Advanced disputes the bank’s claims, saying an “agreement regarding this remaining liability was reached in settlement negotiations with Comerica Bank in 2002.”
Company said the Munich-based parent company was not affected by the action as it is not liable for UFO’s bank liabilities or the trade accounts payable of Advanced Licensing, now known as TSC.
UFO intended to use the credit for six productions, four of which were cancelled by Advanced Licensing in October 2002 because UFO failed to deliver them on time. The cancelled productions accounted for $1.7 million of the lawsuit, according to Advanced, which accuses Comerica of refusing to sign the previously agreed settlement after the projects were cancelled.
Company execs said they do not expect Advanced Medien to be jeopardized by the lawsuit.