You will be redirected back to your article in seconds

Reitman, Pollock settle U dispute

Montecito gets back PFE percentage

Ivan Reitman and Tom Pollock’s Montecito Picture Co. has settled its dispute with Universal Pictures.

Under the terms of the agreement, which was expected (Daily Variety, Feb. 17), Reitman and Pollock have acquired Polygram Filmed Entertainment’s one-third interest in Montecito, making the filmmakers equal partners in the company. (U acquired PFE last year.)

Montecito, which despite published reports will not be transferring its production deal to Universal, also retains ownership of its 16 film development projects.

Matching funds

Montecito originally pacted with PFE in February 1998 to make three-five films a year. Montecito had raised $300 million of its own financing from Citibank, which PFE pledged to match.

That arrangement ran into trouble when U acquired PFE, as part of its $10.26 billion Polygram Holdings acquisition, before the PFE/Montecito deal was closed. Although U kept funding Montecito’s overhead through the beginning of this year, the studio felt that ponying up the $300 million didn’t necessarily make good business sense.

Neither Reitman nor Pollock would comment on the terms of the settlement, but it is understood that Universal has transferred PFE’s 33% stake in Montecito to the two partners and paid them a lump sum in compensation, which they will use to help capitalize the company. While the size of the settlement was not disclosed, it is thought to run into the tens of millions, enough to keep Montecito in business.

Needs new financing, distrib

Montecito’s Citibank facility has now fallen through, and Pollock said that he and Reitman would work to set up a new arrangement, as well as a new studio distribution deal.

“I am delighted that we have worked this matter out with Polygram and Universal to our mutual satisfaction,” Pollock said. “Our company leaves with sufficient capitalization to complete its development program and to establish itself as an independent production company.”

One of the ironies of the contention between Montecito and U was that Pollock is a former vice chairman of Universal Pictures. Reitman’s former entity, Northern Lights Entertainment, also previously had a production deal with U.

Montecito was repped by attorney Bert Fields in the negotiations.

More Film

  • Murder Mystery

    Netflix Reveals Record-Breaking Stats for Sandler-Aniston 'Murder Mystery' Flick

    “Murder Mystery,” the latest Adam Sandler film to debut on Netflix, broke viewing records on the streaming service, the company revealed Tuesday. The film, which is co-headlined by Jennifer Aniston, was seen by close to 30.9 million households in its first 3 days, according to a tweet sent out Tuesday afternoon. 🚨ADAM SANDLER AND JENNIFER [...]

  • Agents Accuse Writers Guild of Refusing

    Writers Guild 'Plans to Respond' to Agents' Proposal as Frustration Mounts

    In a sign of increasing frustration, Hollywood agents have accused the Writers Guild of America of foot-dragging in the bitter two-month dispute. “It has become clear as more days pass that the Guild is not interested in making a deal,” said the negotiating committee for the agents in statement issued Tuesday. “Over the past year, [...]

  • Jermaine Fowler arrives at the 69th

    Jermaine Fowler to Co-Star With Eddie Murphy in 'Coming 2 America' (EXCLUSIVE)

    Jermaine Fowler is set to play one of the leads opposite Eddie Murphy in Paramount’s sequel “Coming 2 America,” sources tell Variety. “Hustle & Flow” helmer Craig Brewer is on board to direct the pic with the studio planning an August 7, 2020 release. Plot details of “Coming 2 America” are unknown, as are the [...]

  • Henry Golding attends the Fragrance Foundation

    Henry Golding Starts Long House Shingle With 'Inheritance,' 'Harrington's Greatest Hits'

    “Crazy Rich Asians” star Henry Golding has started Long House Productions in partnership with China’s Starlight Cultural Entertainment Group with two features in the works. Golding’s first feature under the Long House banner is action adventure “The Inheritance,” based on an original story idea by Alistair Hudson and Golding. Hudson is writing the script for [...]

  • Max Landis Entertainment Weekly party, Comic-Con

    Max Landis Accused of Rape, Assault and Psychological Abuse

    Screenwriter Max Landis is facing allegations of sexual abuse and psychological manipulation from eight women who told their stories to the Daily Beast. Two of the women spoke on the record, and another five were identified by pseudonyms. An eighth women confirmed that she filed a police complaint against Landis in 2008, in which she [...]

  • Michael Fassbender'X-Men: Dark Phoenix' film premiere,

    Michael Fassbender to Produce, Star in Lionsgate Spy Thriller 'Malko'

    Michael Fassbender will produce and star in the Lionsgate spy thriller “Malko,” based on Gerard de Villiers’ S.A.S. series, with the studio planning to launch a franchise with the project. Eric Warren Singer, who was nominated for an Academy Award for best original screenplay for “American Hustle,” will write the screenplay. Joe Drake, chairman of [...]

  • American Film Institute Hires Susan Ruskin

    Susan Ruskin Appointed AFI Conservatory Dean

    The American Film Institute has named producer and educator Susan Ruskin as dean of the AFI Conservatory, where she will lead AFI’s graduate film-training program. Ruskin, who will also carry the title of executive VP, will report directly to Bob Gazzale, AFI President and CEO, the organization announced Tuesday. She replaces producer Richard Gladstein, who left [...]

More From Our Brands

Access exclusive content