×

Voltage Pictures Reaches Settlement With Chinese Metals Firm

Voltage Pictures has reached a confidential settlement with Anhui Xinke New Materials, the Chinese metals firm that backed out of a $345 million deal to buy the film company in 2016.

The settlement resolves part of a lingering conflict over the deal, which was one of the more bizarre transactions to emerge from China’s recent mania for Hollywood acquisitions. The deal fell apart as the Chinese government sought to impose tighter restrictions on foreign investment. Xinke alleged that Voltage had failed to provide adequate documentation to regulators, which Voltage denied.

Voltage sued Xinke and the Zhong Lun law firm, which acted as the escrow agent in the deal, in January 2017, seeking to recoup a $4 million breakup fee. Voltage later took its dispute against Xinke and its affiliate, Wotaiji Capital Management, to the International Centre for Dispute Resolution, the division of the American Arbitration Association that handles cross-border business conflicts.

According to a court filing, the parties recently reached a settlement through the arbitration process, which is subject to a confidentiality agreement.

The civil case against the Zhong Lun firm had been on hold pending the outcome of the arbitration. A judge on Tuesday ordered a trial date for next January.

Zhong Lun contends that the arbitration settlement — to which it is not a party — should resolve the civil case as well. The firm has strongly denied that it acted inappropriately when it returned the $4 million deposit to Wotaiji upon the cancellation of the deal. Voltage continues to press its case that the firm violated its obligations as an escrow agent by ignoring Voltage’s instructions to hold the deposit.

More Biz

  • Pinewood Studios James Bond

    Netflix's Shepperton Studios Deal Is Stretching the U.K.'s Production Limits

    Netflix’s huge new hub at Shepperton Studios outside London is a further fillip for Britain’s booming production sector. Amid jitters over Brexit and its effects on the economy, the streaming giant’s commitment is a vote of confidence in the U.K. entertainment industry and a continuing source of local jobs. But the decision by Netflix to [...]

  • It

    Producer Sues Warner Bros. Over 'It' Film Adaptations

    A producer who developed the original “It” TV miniseries sued Warner Bros. on Thursday, alleging the studio breached his contract by making the films “It” and “It Chapter Two” without him. Frank Konigsberg and Larry Sanitsky were running Telepictures in the early 1980s when they acquired the rights to the Stephen King novel. They developed [...]

  • Lionsgate CEO Jon Feltheimer

    Starz Nears Realignment: Why Lionsgate Won't Hire a CEO to Replace Chris Albrecht

    Nearly six months after Starz CEO Chris Albrecht exited in February, Lionsgate brass is moving closer to a revamp of the premium TV network’s executive structure. According to insiders, at least one thing is clear: Albrecht is not expected to be replaced as CEO. Instead, Lionsgate chief executive Jon Feltheimer is taking a more active [...]

  • Movie Ticket Subscriptions

    As MoviePass Fades, Theaters Fall In Love With Subscription Services

    MoviePass may be cratering, but movie theater subscriptions are here to stay. AMC and Cinemark already operate their own online ticketing services. And by the end of July, Regal Entertainment is expected to unveil a subscription plan for customers accustomed to getting all manner of entertainment for a monthly fee. With ticket sales down more [...]

  • John FordNPact Awards, Show, Los Angeles,

    John Ford to Exit as Head of Unscripted Producers Trade Association NPact

    John Ford has stepped down as general manager of NPact, the trade association that represents unscripted TV producers. Ford is exiting the post he’s held since 2015 because of the potential for conflicts of interest arising from his role as head of programming for digital multicast outlets Justice Network and Quest Network. The channels were [...]

  • Woodstock 50 Applies for Vernon Downs

    Woodstock 50 Applies for Vernon Downs Permit Yet Again

    For better or worse, Woodstock 50 isn’t giving up on Vernon Downs, despite being rejected twice already: The producers have applied for another permit to hold the festival at Vernon Downs, according to the Utica Observer Dispatch. Town Attorney Vincent Rossi confirmed the application was submitted Wednesday. This is the festival’s third application; previous applications [...]

  • Bert and Ernie

    Sally Field, Linda Ronstadt and 'Sesame Street' Among 2019 Kennedy Center Honorees

    Sally Field, Linda Ronstadt, “Sesame Street,” conductor Michael Tilson Thomas and R&B veterans Earth, Wind and Fire have been selected as the 2019 Kennedy Center Honorees. The kudos will be handed out Dec. 8 at the Kennedy Center Opera House in Washington, D.C. The award to “Sesame Street” marks the first time the prestigious laurel [...]

More From Our Brands

Access exclusive content