Ad-hoc Press Release from Intertainment AG
Intertainment reaches settlement with Film Finances, Inc., Film
Finances (1998) Canada and IMPC
Ismaning near Munich, March 16, 2005 – Intertainment AG,
Ismaning near Munich, has reached a settlement with bond companies Film Finances,
Inc. and Film Finances (1998) Canada Ltd, in conjunction with the pending legal
disputes in the USA.
Under the terms of the settlement, Intertainment will receive a payment from
Film Finances, Inc. and Film Finances (1998) Canada. It has been agreed not to
disclose the amount of the payment. Film Finances, Inc. and Film Finances (1998)
Canada will also assign their claims against the insolvent film producers
Franchise Pictures and against subsidiaries of Franchise to the estate, hence
withdrawing from the list of creditors. Intertainment is the biggest unsecured
creditor in the Franchise insolvency proceedings.
It has further been agreed that International Motion Pictures Corporation Ltd. (IMPC),
Hong Kong, will withdraw its arbitration claim against Intertainment in
connection with the film “Tracker”.
Until the settlement was concluded, Film Finances, Inc and Film Finances Canada
(1998) Ltd., together with Comerica Bank and executive managers of the bank,
numbered among the opposing parties involving claims asserted by Intertainment
in an arbitration proceeding pending in the USA. Under the arbitration
proceeding, Intertainment is asserting claims amounting to at least 100 million
dollars relating to the submission of fraudulently inflated film budgets. The
opposing parties are demanding from Intertainment payments totaling 70 million
dollars. Intertainment will consistently pursue the arbitration proceedings
involving claims against Comerica Bank and its managers. Intertainment was
awarded a total of 121.7 million dollars in the successful fraud trial won
against the American film producer Franchise Pictures and other parties in June
2004.
Contact:
Intertainment AG, Investor Relations, Osterfeldstrasse 84, D-85737 Ismaning, Germany
Tel.: + 49 (0)89 21699-0, Fax: + 49 (0)89 21699-11
Internet: www.intertainment.de, E-mail: investor@intertainment.de