Our Alchemy creditor suit claims films ‘being held hostage’ by trustee

By Caroline Salls

Pittsburgh, May 8 – Our Alchemy, LLC distribution agreement party Nu Image, Inc. filed a lawsuit Friday against Our Alchemy’s Chapter 7 trustee, alleging that 163 films are “being held hostage” by the trustee, according to a filing with the U.S. Bankruptcy Court for the District of Delaware.

Nu Image said Chapter 7 trustee George L. Miller “has shown zero inclination to act with any degree of speed, efficiency or skill” in the distribution of the films in question.

In addition, Nu Image said the distribution “has been derailed due to the trustee’s utter failure to meet his fiduciary obligations to both the debtor’s estate and its creditors, including Nu Image.”

In order to generate any return from the distribution agreements, Nu Image said Our Alchemy or the trustee must enter into arrangements with retailers, broadcasters or other licensees for the exploitation of the films in all formats.

“And yet the debtor’s bankruptcy case is in its 11th month and during that time the trustee has taken no steps toward exploitation of the estate’s rights under the agreements,” Nu Image said.

“As a direct result of the trustee’s inaction, each one of the 163 films is languishing instead of being subject to proper and timely distribution, all the while losing value over time.”

Through the lawsuit, Nu Image is seeking at least $2.13 million in compensatory damages, as well as damages related to the trustee’s alleged breach of fiduciary duties and attorneys’ fees and punitive damages.

Nu Image is also asking the court to rule that the Our Alchemy agreements are terminated and that the films be returned to the plaintiff.

Our Alchemy is an independent film distribution company. The company filed bankruptcy on July 1, 2016 under Chapter 7 case number 16-11596.

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