Panavision needs to pay up what it owes, says a bank that is taking the camera supply company to court for $1.7 million. The money is the remainder of a two-part $335 million refinancing that Panavision worked out back in 2006 with Credit Suisse. Most of that debt was cancelled in 2010 in a further financing restructuring. Still, a bit was left over and has supposedly not been paid by Panavision since the debt matured at the end of March 2012. Late last month Wilmington Trust, National Association filed paperwork with the New York State Supreme Court seeking a summary judgment from the court to get the money back. Wilmington, the collateral agent for Credit Suisse, is claiming breach of contract and wants the $1.7 million plus interest, legal costs and “such other and further relief as this Court deems just and proper”.But here’s the thing: They could end up getting a piece of Panavision if the decades-old company that has provided cameras to some of Hollywood’s greatest films doesn’t pony up the dough. “Under the Second Lien Guarantee and Collateral Agreement, the Defendants pledged collateral, comprising substantially all of their assets, to secure their obligations arising out of the Second Lien Credit Agreement,” notes an affirmation (read it here) by lawyer Daniel Hope for Wilmington. Either way, a court hearing is scheduled for July 9 in NYC on the matter for Wilmington’s lawyers to make their case for the motion.
Deadline's Dominic Patten - tip him here.