Redbus seeks buyer's payment

A UK film distribution company backed by entrepreneur Cliff Stanford has issued a $16m (£11m) writ against a German distributor which it says withheld payments after taking a majority stakeholding in the business.

Mr Stanford, who made a fortune on the sale of his Demon internet service provider, has claimed that Helkon ignored a number of agreed deadlines for the completion of a deal for 51% stake in Redbus Film Distribution.

"We have been owed the money since October," he said.

"The last information that I had was that [Helkon] had said they had no money, but they were going to raise it in the next few days.

"It has been exactly the same comment for months."

The writ alleges that Helkon's withholding of payments has put Redbus Film Distribution at risk of running short of capital, and has already caused it to lose a number of key employees.

But Helkon chief executive Mark Ramaker yesterday refuted allegations that the company had told Redbus it could not make the payments. He said the money had been withheld because of a number of unresolved issues Helkon had with Redbus Film Distribution.

Mr Ramaker described the payment delay as a "technical detail" but said he could not discuss his misgivings over the deal because it would damage Helkon's position. "It is not serious, and it will not come to court," he said.

Asked if Helkon could make the payments, he said: "That is not an issue for us."

He said Helkon's finances were in good health, and that the company had recently celebrated a number of successes, including securing the German distribution rights for The Mexican, a feature film starring Julia Roberts and Brad Pitt.

Helkon acquired its stake in Redbus Film Distribution as part of a plan to create a pan-European production and distribution network.