Movie and TV financing hedge fund Aramid Entertainment Fund Ltd. has filed for Chapter 11 bankruptcy, claiming it needs protection from creditors while it deals with the costs of suing borrowers who failed to repay loans.
Aramid “has been embroiled in substantial and time-consuming litigation relating to some of its investments,” said Geoffrey Varga, a consultant helping to liquidate the fund in a statement. “The prosecution and defense of these actions has consumed a substantial portion of AEF’s liquidity and exposes it to potential liability.”
Aramid listed consolidated assets of $237.3 million and consolidated debt of $11.5 million as of April 29 in Chapter 11 documents filed on Friday in U.S.