David Bergstein may be one of the most reviled people in Hollywood. He faces litigation and bankruptcy in two countries, and has a court-appointed trustee crawling over his assets at the request of more than a dozen creditors, which include most of the major guilds.
He also is spearheading an attempt to buy Miramax from the Walt Disney Company on behalf of unnamed bidders. Unexpectedly, the financier and producer agreed to be grilled by TheWrap’s Sharon Waxman.
© 2008 Los Angeles Times photo by Gary Friedman. Reprinted with permission.
Why are you willing to talk to us?
I’d like to clear up a few things. You reported that I owe Comerica $70 million. We owe Comerica zero; we have an excellent relationship with Comerica. We have $350 million of loans with them over the past five years. None of the entities which Aramid [a creditor] has tried to put into bankruptcy owes Comerica any money.
OK, we’ll fix that if true. But what do you have to say about these supposed shell companies, and the dozens of creditors who are after you? And the court trustee?
They provided an illusion to the judge that we have hundreds of investors and I’m pilfering the company. Five companies have been petitioned to be put into bankruptcy: R2D2, CT-1, Capitol Films, ThinkFilm and Capco. They have no assets whatsoever. If I want to take money out of those companies, I’m entitled to do it.
My family of entities is less than 50 companies. Every independent company that makes a lot of films has an entity for each film they finance. I own over 1,300 films. The fact that I have 50 entities is making something out of nothing. My structure is uncomplicated compared to Miramax or New Regency.
And what about all the creditors?
There are seven creditors; the rest are fake.
Didn’t you stiff Taylor Hackford?
Taylor Hackford was paid in full. The guild filed misleading declarations, which they’ll have to answer to later. We paid him off in October. The guild filed a very tricky piece of paper to mislead the court, and I’m going to take care of them for having done that. They wield a lot of power and abuse the power. The guild didn’t say he wasn’t paid. They said it’s old arbitrations without telling the truth.
Well, you don’t seem to have a lot of friends around town.
I don’t have a lot of friends around town because most of the films I acquired, I acquired through foreclosure. The producers who got stiffed think I should pay them. This is an industry run by lawers and agents. What I’m doing is not popular. That’s why I don’t have a lot of friends around town.
But you have friends in Saudi Arabia?
I don’t have a Saudi Arabian investor; that’s misinformation.
Then who are your backers for Miramax?
It’s an offshore entity with three parties – Ron Tutor, and two other parties.
