Magazine article Screen International

Dick Clark Productions Owner Sues Wanda for Break-Up Fee

Magazine article Screen International

Dick Clark Productions Owner Sues Wanda for Break-Up Fee

Article excerpt

Eldridge Industries on Friday said it had terminated the proposed acquisition by Dalian Wanda Group of Dick Clark Productions and has filed suit for what is understood to be the $25m balance of a break-up fee.

The statement reads: "Eldridge Industries announced today that one of its affiliates has terminated its agreement to sell Dick Clark Productions to the Dalian Wanda Group. Wanda had agreed to acquire Dick Clark Productions in November 2016.

"Eldridge's affiliate terminated the agreement this week after Wanda failed to honor its contractual obligations. Eldridge's affiliate also has filed with the Delaware Chancery Court to compel release of the balance of escrowed funds to which it is contractually entitled given Wanda's failure to consummate the sale."

The move comes after Dalian Wanda withdrew from the deal. Screen understands the Chinese company's billionaire owner Wang Jianlin reconsidered the price tag, particularly as his company had come under scrutiny in the marketplace when The Great Wall flopped.

Sources said Eldgidge's lawsuit is a request to the court to compel Wanda to release $25m of a $50m deposit it put into an escrow account last November that amounted to a potential break-up fee.

Wanda released $25m to Eldridge in January to extend the acquisition closing date and Eldridge is seeking the balance.

MARCH 9 REPORT: Screen understands Dalian Wanda's proposed $1bn swoop on the Golden Globes producer has been called offbecause billionaire Wang Jianlin has deemed the asking price to be too high. …

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