According to Variety, DCP owner Eldridge Industries on Friday filed suit in Delaware Chancery Court to receive about $25 million in termination fee funds promised under the agreement reached in November. Both sides denied that the deal was in trouble last month when rumors first surfaced in late January. But earlier this week, there were internal signs at DCP that the deal was falling apart.
“Eldridge Industries announced today that one of its affiliates has terminated its agreement to sell Dick Clark Productions to the Dalian Wanda Group,” Eldridge said in a statement. “Wanda had agreed to acquire Dick Clark Productions in November 2016. Eldridge’s affiliate terminated the agreement this week after Wanda failed to honor its contractual obligations. Eldridge’s affiliate also has filed with the Delaware Chancery Court to compel release of the balance of escrowed funds to which it is contractually entitled given Wanda’s failure to consummate the sale.”
The next steps for DCP are not immediately clear. One source close to the situation predicted that the company will continue to operate autonomously within Eldridge Industries for the near term.
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