Advanced Medien has reached a settlement with director Wolfgang Petersen.
The director filed the lawsuit against Advanced in August 2001 for underfunding his Red Cliff Prods., which was set up as a joint venture under a five-year multimillion-dollar deal (Daily Variety, Aug. 9, 2001).
The settlement sees both parties abandon their suits, which were filed in an American civil court, as well as the mutual waiver of their contractual claims.
At the same time, an agreement has been reached for the liquidation of Red Cliff. Further settlement details were undisclosed.
The deal allegedly required Advanced to provide overhead funding to Red Cliff of $7.5 million in five annual installments and development funding of $12 million in eight semi-annual installments. Advanced was also required to put up a letter of credit for $5 million.
According to the original complaint, Advanced never provided the letter of credit, instead belatedly providing a $3 million letter of credit. In addition, Advanced owed an installment of $1.3 million in development funding.
The complaint also alleged causes of action for breach of contract and fraud and sought damages and the right to terminate the contract.
“We are glad that we were able to end the lawsuit with this settlement,” says Otto Dauer, chairman of the of Advanced management board. “The partners are separating amicably in friendship, and Advanced Medien wishes Wolfgang Petersen continuing success in his work as a producer and director.”
Patriot Advisors helped broker the settlement.