What’s up with the pension payments that Relativity Media was supposed to make for the 2014 film Earth To Echo? They’re still in arrears, and Disney wants to be sure they’re taken care of, it told the U.S. Bankruptcy Court in a filing today — one of many from those who want to be sure their interests aren’t forgotten as Relativity prepares for a bankruptcy auction.
Disney sold the family-friendly sci-fi film to Relativity in 2013. The agreement required the now-bankrupt studio to absorb pension payments to various guilds including the Writers Guild, the Directors Guild, the Screen Actors Guild, the American Federation of Television and Radio Artists, the American Federation of Musicians, and the International Alliance of Theatrical Stage Employees.
But the payments “remain outstanding,” Disney says.
Relativity has proposed to offer a promissory note to the guilds to which it owes money on a host of films including Earth to Echo. Whoever buys the studio would be on the hook to make good on them, potentially costing $25 million.
The problem? Relativity’s “Contract and Cure Schedule,” filed September 3, lists an amount for the film at $0.00.
Disney says it “believes that the outstanding Guild Payments will be cured in toto” when Relativity is sold. Still, it “reserves its rights” to go to court if “for any reason the Guilds look at any time to [Disney] to satisfy the outstanding Echo Guild Payments.”
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