David Bergstein Sues Bankruptcy Trustee

A Bergstein company claims Ronald Durkin is trying to force him to settle the bankruptcy cases by 'waging war' with improper methods

The suit, filed in federal court in Los Angeles by Bergstein's UK-based Pangea Media Holdings, arises from the company's dealings with Daro Film Distribution, a Monaco-based film licensing company that Bergstein claims owes him money. The suit says Bergstein has been frustrated in his efforts to collect because Durkin and his counsel Leonard Gumport have pursued the money because the licensed movies are or were owned by the now-bankrupt companies they oversee.

“The trustee has taken his improper activity to new heights with respect to Daro’s payment,” the suit alleges, adding that the trustee has ignored his attempts to settle the matter without further litigation.

Bergstein has been involved in several lawsuits related to the 2010 involuntary bankruptcy of five film companies he controlled. That case continues and has spawned numerous related lawsuits.

The embattled film financier, who once ran ThinkFilm with friend and business partner Ronald Tutor, has blamed David Molner and his company Aramid Entertainment for conspiring with the trustee to try and "destroy" Bergstein, while making claims on the bankrupt companies.

The suit also says the trustee failed to agree to a settlement when Bergstein’s former business partner Tutor offered to pay $4 million to remove liens in the cases.
The trustee, according to the suit, has collected testimony, computer files and documents but “taken no steps to recover any funds” due to the bankrupt companies, while entering into “an improper agreement which allows Aramid to receive money that rightfully should go to secured creditors, even though Aramid previously released its claims against Bergsten and the debtor companies in the bankruptcy.
“Aramid continues to abuse the entire bankruptcy process after being emboldened over and over again by the Trustee,” charges the suit. In addition, the suit says Aramid in conjunction with the trustee has filed about 50 lawsuits against entities and individuals “calculated to punish people supporting Bergstein.”

In response to the suit, Aramid’s Molner tells THR in a statement: “How can we be conspiring with the trustee that Mr. Bergstein chose? He forgets we each submitted 3 names to the US Trustee’s office and Mr. Durkin topped the nominees put forth by the Bergstein-Tutor camp. Go sell crazy some place else.”

Read More: http://www.hollywoodreporter.com/thr-esq/david-bergstein-sues-bankruptcy-trustee-397883