Aramid Entertainment Fund Ltd., a film production investor, pursued a Chapter 11 protection in the previous week with plans to close down, saying it’s overwhelmed with the weight of pending lawsuits it’s currently involved in.
The fund indicate it’s facing liquidity matters since it’s unable to collect on loans, based on a filing made last week at the Manhattan U.S. Bankruptcy Court.
Aramid lent Mr. Bergstein and other entities over $62 million in multiple transactions. Both are currently part of a number of lawsuits.
These include a federal litigation in Los Angeles brought by the film production firm against Mr. Bergstein and Mr. Tutor seeking over $12 million of loans owed for financing.
Aramid is also facing another suit in a Los Angeles court by several investors on the fund’s claimed distribution suspension.
With all told, the filings made in the bankruptcy court indicate multiple active suits with Aramid as either defendant or plaintiff.
Aramid listed assets of $203 million. Its overall liabilities are at $11.5 million.