Judge re-seals Bergstein docs

Court papers back under seal, but already out of the bag

A day after revealing a bombshell report that condemns the business practices of embattled financier David Bergstein and his sometime-business partner Ron Tutor, a federal bankruptcy judge resealed the docs — but not before the 374-page report got to the media, including Variety.

Bergstein’s legal team filed an emergency motion to seal the court papers, but only after they exposed allegations of perjury, back-dating documents to hide a substantial transfer of assets and the use of dozens of shell companies to cover up unethical business dealings.

Court-appointed trustee Ronald Durkin prepared the report at the end of an involuntary bankruptcy case against Bergstein film companies CapCo Group, CT-1 Holdings, ThinkFilm, Capitol Films Development and R2D2. Durkin recommends the consolidation of all Bergstein’s companies, creating just one entity for the trustee to sort through to pay back the creditors that forced the five companies into bankruptcy.

Judge Barry Russell could unseal the documents again, but is likely taking caution while he reviews the Bergstein team’s reasons for keeping them under lockdown.

Bergstein consulted on Tutor’s purchase last year of Miramax from Disney for $660 million. Since then, the new leadership has brought in several former employees of Bergstein companies, including Pangea attorney Ray Reyes and Capitol Films Limited exec Huw Jones.

(Note: ThinkFilm went into bankruptcy with an unpaid debt to Variety parent company Reed Business Information.)

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