MGM Files $20 Million Suit Against Former Australian Buyer
Oct. 19, 1989
LOS ANGELES (AP) _ MGM-UA Communications Co. has filed a $20 million lawsuit against the domestic arm of its former suitor, claiming Qintex America Ltd. has not made $3 million worth of payments for a TV development deal.
The complaint filed here Tuesday in U.S. District Court claims Qintex has neglected to make payments for August, September and October. The suit seeks $20 million in damages.
MGM-UA claims Qintex agreed in April 1988 to a co-financing venture involving American network television programming. The contract is guaranteed by Qintex's parent, Qintex Australia Ltd., the complaint stated.
A message left on the answering machine of Qintex spokesman Daniel Saks after business hours Wednesday was not immediately returned, and a receptionist reached after business hours at the office of Qintex Entertainment spokesman Jonathan Lloyd said no one was available to comment.
MGM-UA annulled its $1.5 billion agreement to be bought by Qintex Australia Ltd. last week, claiming Qintex failed to deliver a $50 million letter of credit by a Sept. 22 deadline.
MGM-UA previously filed a $50 million lawsuit in U.S. District Court saying Qintex intentionally interfered with a $1.4 billion offer for MGM-UA by Rupert Murdoch's News Corp.
The movie studio had feared that Qintex would be unable to finance the acquisition.