Tinopolis makes latest peace offer to former producers owed $ 70million – fitshopee

EXCLUSIVE: Nailed it! and Hell’s Kitchen Production group Tinopolis has made its latest peace offer to a group of angry ex-producers, to whom the company owes £ 50million ($ 70million) after a controversial financial restructuring.

About 15 producers, including Magical Elves founders Dan Cutforth and Jane Lipsitz, are considering legal action after Tinopolis erased the value of their loan notes in March. These loan notes were basically IOUs promised to producers when they sold their business to Tinopolis.

Tinopolis said financial restructuring was key to securing the company’s future after being put at risk by the coronavirus crisis. “The damage caused by Covid has been significant and a full recovery will not be easy,” Executive Chairman Ron Jones said in April.

Tinopolis seeks peace deal with angry ex-producers owed $ 70million by ‘Hell’s Kitchen’ studio

Now, in a bid to avoid a lawsuit, Tinopolis has offered loan note holders a fixed cash payment of £ 5,000, or part of a 5% stake in Tinopolis Group Limited, a company owned by the department created as part of the financial restructuring which controls the group’s commercial entities.

In a letter sent to former producers late last month, attorney for Tinopolis Group Limited, Blake Morgan, said the offer was “fair and reasonable to all parties” and was not open for negotiation. . Loan ticket holders have until June 28 to agree to the terms, according to the letter obtained by Deadline.

Blake Morgan stressed that Tinopolis Group had been “ravaged” by the Covid-19 and that the restructuring was necessary to avoid a “complete cessation of activity”. This “unfortunately” meant the liquidation of subsidiary DMWSL 584, which held around £ 100million in loan notes, half of which was owned by management and the other half by producers who were once part of the group.

Deadline understands that the 15 disgruntled loan ticket holders are unlikely to accept the offer, given that it is well below what they are owed. They continue to explore legal action and remain in talks with a QC about the case after receiving expressions of interest from four litigation funds eager to fund their grievance.

The previous offer they received was made through Buchler Phillips, who is responsible for the liquidation of DMWSL 584. The offer included a distribution of dividends from the liquidation as well as part of an equity stake. of 5% in Tinopolis Group Limited.

Blake Morgan said Buchler Phillips “may be reluctant” to pay dividend amid threat of legal action “for fear of leaving liquidators and / or the company [DMWSL 584] without sufficient resources to defend themselves.

A spokesperson for Tinopolis Group Limited said: “We (TGL) have no obligation to make the offer, but after soliciting comments from the liquidators, we consider the terms of the offer to be fair and reasonable to all parties.

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