Hedge Funds Sued Over Financing Of ‘Terminator’ Sequel

Aug 18 2009 | 4:51am ET

Will The Terminator be back?

The producers of the fourth iteration of the classic action movie have sued a hedge fund and one of its former employees. The hedge fund, Pacificor, loaned Derek Anderson and Victor Kubiceck $30 million to buy the rights to the Terminator series.

Anderson and Kubiceck say Pacificor and former employee Kurt Benjamin, who they say arranged the loans, engaged in fraudulent double-dealing and are now trying to take control of the Terminator franchise. Last week, Pacificor filed a lien against Dominion Group, which is controlled by the Terminator producers. The hedge fund’s loan was secured by the Terminator rights.

Dominion yesterday filed suit seeking to expunge the Pacificor lien. Separately, another company controlled by Anderson and Kubiceck, The Halcyon Co., which actually owns the rights to the Terminator series, sued Benjamin, claiming his fraudulent dealings left it in danger of defaulting on the Pacificor loan. The two also claim that Benjamin and Pacificor CEO Andrew Mitchell have tried to shake down Halcyon, threatening to ruin the company by disclosing confidential information about it.

Both suits seek $30 million in damages.

According to the producers, Benjamin claimed to be an independent operator in arranging the loans, when he was actually working for Pacificor.  The lawsuit alleges that Anderson and Kubiceck weren’t the only ones kept in the dark by Benjamin; it says he did not tell his bosses at the hedge fund that Halcyon was paying him to arrange the financing.

Now, they say, Santa Barbara, Calif.-based Pacificor has filed the lien to keep Halcyon from raising the money it needs to produce a fifth Terminator film.

Mitchell told the Los Angeles Times that Pacificor does “not believe we have done anything wrong.” Benjamin said Halcyon’s allegations “are false and without merit.”

Terminator: Salvation, one of the most expensive independent films ever made, was released earlier this year.

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