ThinkFilm and Capitol Films Development, two of the companies in financier David Bergstein’s troubled film empire, have been effectively pushed into bankruptcy by a US Federal judge.
The judge granted a motion for summary judgement in the involuntary bankruptcy cases against ThinkFilm and Capitol. Creditors filed a motion in March attempting to force the two companies and three others controlled by Bergstein into Chapter 11 bankruptcy. The case against the three other companies will continue.
The judge also denied a motion calling for creditor Aramid Entertainment to put up a $25m bond to ensure that it could pay costs if it loses any of the cases.
The summary judgement regarding ThinkFilm and Capitol had been expected because lawyers for the companies had not opposed a motion for summary judgement.