Film company, US reach pact in 1MDB related case

Aug 2, 2016

 

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The US Department of Justice (DOJ) has just withdrawn its previous restraining order made in its civil lawsuit to seize assets made on July 20th against Najib stepson Riza Aziz’s Red Granite pictures.

Due to this, Red Granite is allowed to operate normally and banks are ordered by the DOJ to continue dealing with Red Granite. Riza is also back in the USA to make his films.

DOJ will also “hold harmless” business partners, and vendors of Red Granite.

The current income from the films “Friends with Kids” and the very successful “The Wolf of Wall Street” can also be used to meet existing commitments or pay vendors or loans but future income of these two films will be kept in escrow pending the outcome of the civil lawsuit by the DOJ.

 

So far, Red Granite’s films combined have made over USD800 million – including USD400 million from the “The Wolf of Wall Street” and continues to make many millions per year from sales to cable TV, sales and rental of DVDs and online services such as Netflix.

Riza had previously been accused by the DOJ of taking USD200 million of funds related to 1MDB but Riza had said these were loans which WSJ had previously reported that Riza’s company had paid back a significant portion of.

Red Granite’s latest film, a remake of the 1973 prison-break film “Papillon,” is about to start production.

Source: Wall Street Journal

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