×
You will be redirected back to your article in seconds

Voltage Sues Xinke Over Busted Acquisition Deal

In November, it appeared that Voltage Pictures would be the latest company to pull off a lucrative sale to a Chinese buyer. Anhui Xinke New Materials announced it would buy 80% of the company, which produced both “The Dallas Buyers Club” and “The Hurt Locker,” for a healthy $345 million.

But in December, the deal suddenly collapsed, with Xinke alleging that Voltage had failed to provide adequate documentation to Chinese regulators.

The deal collapsed as China is taking increasing steps to clamp down on overseas investment. Voltage could well be one of the first victims of China’s new restrictions, but it’s not taking defeat lying down. Instead, it’s responding as Americans generally do — by going to court.

In a lawsuit filed in L.A. Superior Court on Friday, Voltage accuses Xinke of concocting a “false and groundless” excuse to void the sale agreement.

“Plaintiffs had not withheld any information sought by Chinese regulators,” the suit states. “Instead, Xinke was seeking to terminate the binding and enforceable Purchase Contract… for other reasons.”

The suit notes that at the same time the Voltage deal collapsed, Xinke announced it would instead purchase 29.9% of Pegasus Entertainment, which is based in Hong Kong.

Voltage is now seeking to obtain a $4 million deposit, which was posted by Xinke while the sale was pending and held in escrow by the Zhong Lun law firm. The firm, which is based in Beijing but has offices in the U.S., allegedly returned the $4 million deposit to Xinke despite initially promising to hold on to the funds while the dispute played out.

Voltage, which is suing in the name of two holding companies set up to effectuate the sale, filed suit against both Xinke and the Zhong Lun firm. The chances of recovering funds from the Chinese materials company would appear to be slim, but Voltage may have more luck with the law firm, which has to do business in the U.S.

The plaintiffs are represented by Jeremiah Reynolds of Kinsella Weitzman Iser Kump & Aldisert.

Popular on Variety

More Film

  • Gully Boy to represent India in

    'Gully Boy' to Represent India In Oscars Race

    The Film Federation of India has chosen Zoya Akhtar’s “Gully Boy” as its entry in the Academy Awards’ international feature film category. The picture, a coming of age tale about an aspiring rapper in Mumbai’s Dharavi slum premiered at the Berlin film festival in February before opening to a wave of acclaim at home in [...]

  • Lucy-Lost

    Cartoon Forum: 30th Anniversary, Little Giants and New Generations

    TOULOUSE, France –  Celebrating its 30th anniversary, Cartoon Forum wrapped Sept. 19 having showcased the ever-growing strength of European animation. 85 projects were pitched from 24 countries at the co-production forum platform that played host to north of 1,000 investors, distributors and producers – a record number. Falling on French-speaking Belgium – Wallonie-Bruxelles – whose [...]

  • Renee Zellweger Rufus Wainwright Sam Smith

    Renée Zellweger: Judy Garland Was 'My Childhood Hero'

    Awards buzz is building around Renée Zellweger for her performance as Judy Garland, emerging as a frontrunner in the Oscar race for best actress. But for her, the real prize was paying tribute to Garland, of whom she’s been a lifelong fan. “Nobody was prettier, nobody sang prettier…the adventures she had, [she was] my childhood [...]

  • Topic Studios

    Layoffs Hit Topic Studios as TV Division Relocates to West Coast (EXCLUSIVE)

    A small round of layoffs has hit Topic Studios this week in the television division, insiders familiar with the company told Variety. One of the insiders said three executives at the New York-based producer and distributor are out: senior vice president of scripted programming and Viacom alum Lisa Leingang, vice president of development Mona Panchal [...]

  • 'Downton Abbey' Music Gets 'Bigger, Better,

    As 'Downton Abbey' Hits the Silver Screen, the Music, Too, Gets 'Bigger, Better, Grander'

    When “Downton Abbey” fans hear that familiar strings-and-piano theme, a Pavlovian response ensues: Get to the television immediately, because you don’t want to miss a minute of the addictive Crawley family melodrama to follow. This week, with the “Downton Abbey” movie reaching theaters on Friday, fans can’t wait for their fix of Lady Mary and [...]

  • 45 Seconds of Laughter

    Film Review: '45 Seconds of Laughter'

    “Everyone is worth more than their worst act,” said Roman Catholic sister and anti-death penalty advocate Helen Prejean, and it’s with these words that “45 Seconds of Laughter” closes. It’s an apt sentiment on which to leave Tim Robbins’ sincerely felt documentary study of the therapeutic acting workshops run by his own theater company in [...]

More From Our Brands

Access exclusive content