David Bergstein Creditors’ Rare Win: Asset Control

In an extremely rare decision, a federal bankruptcy judge appoints a trustee to take over the film financier’s books

How deep in the weeds was David Bergstein with his creditors? 

Things were so bad that a federal judge took the extremely rare measure Tuesday of appointing their interim trustee to take over the film financier’s main companies, including ThinkFilm and entities related to Capitol film, according to the Hollywood Reporter.

The creditors banded together two weeks ago to launch a legal assault that amounted to an asset takeover bid. The 13 creditors — later joined by 15 more — are attempting to force him into bankruptcy and seize enough to recoup millions in welshed debts from the Capitol Films CEO.

Federal bankruptcy judge Judge Barry Russell said he heard "overwhelming evidence" for the creditors — not so much for Bergstein’s team, the Reporter wrote. A creditors’ attorney told the Reporter that it was just the third time in 45 years that the bankruptcy court has appointed an interim trustee.

The next hearing is set for May 25.