NSB Film Corp., the former Hemdale Film Corp., sued its former top execs Monday for selling off valuable assets to another company they ran at cut-rate prices prior to putting the company into bankruptcy.
As part of its bankruptcy action, NSB sued John Daly, Hemdale’s former chairman/CEO; Derek Gibson, its former president/chief operating officer; and Rene Rousselet, its former vice president of finance.
The trio hold similar titles at Hemdale Communications Inc., a company created in 1988 and renamed shortly after NSB filed for bankruptcy protection in October 1992.
NSB alleges that another company run by Daly and Gibson, Hemdale Pictures Corp., failed to repay a $ 1.6 million loan from NSB.
Additionally, the suit charges the trio with transferring the music publishing rights from Hemdale’s library to yet another Daly/Gibson company — Beverly Partners Ltd. — absent “valuable consideration,” according to the suit.
The suit also alleges that Hemdale sold its Beverly Blvd. office in September 1990 to Beverly Partners for $ 2.5 million, even though it had been appraised at $ 3.6 million four months earlier.
And finally, the suit accuses Gibson, Daly and Rousselet, while they were in change, of selling a bulk of Hemdale’s homevideo rights, including the blockbuster “Terminator,” to Hemdale Home Video, still another company controlled by the trio. The deal called for NSB to receive a percentage of the receipts generated from the video sales, but the suit alleges that the company has gotten nothing.
In addition to Daly, Gibson and Rousselet, the suit also names Hemdale Pictures, Hemdale Home Video and Beverly Partners as defendants. Rousselet said including him in the suit was “ridiculous.” Gibson declined to comment on the substance of the suit since he had not yet seen it.
“On the surface, these allegations are without merit,” Gibson said.