Entertainment Hedge Fund Files For Bankruptcy As It Sues Fortress

Jun 17 2014 | 8:59am ET

A hedge fund that invests in film and television productions has filed for bankruptcy as it seeks to collect money it says it is owed.

Aramid Entertainment Fund sought protection in federal bankruptcy court in New York. The fund, which is in the process of liquidating, has accused Fortress Investment Group of cutting it out of a film-financing deal with Sony Corp.

Aramid “has been embroiled in substantial and time-consuming litigation relating to some investments,” Kinetic Partners’ Geoffrey Varga, a consultant to the fund, told Bloomberg News. “The prosecution and defense of these actions has consumed a substantial portion of AEF’s liquidity and exposes it to potential liability.”

Aramid is seeking at least $44 million from Fortress, which it said reviewed its deal with Sony and Relativity Media in 2010 as part of a potential buyout. But Fortress never acted on that plan; according to Aramid, it used the information gleaned from the review to buy out Citigroup’s share of the deal, and then worked out a deal with Relativity to cut Aramid out, leaving it with nothing for its $22 million investment.

That case is set to go to trial in August.


In Depth

Exotic Assets: Investing In Rare Violins

Jan 17 2017 | 4:43pm ET

By definition, alternative investments include exotic assets far beyond your typical...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

The Trump Administration: What It Could Mean for Carried Interest

Jan 19 2017 | 5:25pm ET

The arrival of the Trump administration brings the potential for a repeal of the...

 

From the current issue of

Versum Materials (VSM), with a market capitalization of $2.7 billion, enables chipmakers to achieve higher performance at lower cost with enhanced reliability. Versum is a leading global provider of electronic materials for the integrated circuit and flat-panel display markets.